FTC Targets Bogus Talent Scouts

By KALPANA SRINIVASAN, AP

WASHINGTON (AP) - Phony talent scouts are using flattery to get them everywhere with consumers, who sometimes shell out big bucks to become ``stars.'' The government has filed a string of charges.  A common scenario runs like this: A so-called agent approaches a mother and her toddler in the mall and says the child has the looks to be a model in TV commercials. The scout leaves a card and urges her to make an appointment. That's where the consumer is coerced into paying for expensive modeling classes and photo shoots, according to the Federal Trade Commission.

The FTC announced Thursday charges against Screen Test U.S.A., accusing the company of using a screen test for children to con parents into buying company products.

Parents who saw television, radio or Internet ads and called the company were told to bring their children in for a $45 screen test.  After the company informed parents that their children had passed the screen test, scouts put pressure on the families to buy packages of photographs ranging from $495 to $795.

According to the commission, the firm, based in Wayne, N.J., with branches along the East Coast, also falsely claimed that children were more likely to be signed by well-known talent agencies through the company.  ``This screen test was a smokescreen,'' said Jodie Bernstein, director of the FTC's Bureau of Consumer Protection. ``Consumers who bought products and services from these individuals thought they were getting good advice from season professionals, and they weren't.''

In addition, the FTC charged that Screen Test failed to follow the ``cooling off'' rule, which allows consumers some rights to cancel services when companies conduct their businesses at locations other than their permanent offices.

A federal court in New Jersey has temporarily halted the company's operations and frozen its assets. A preliminary hearing seeking an injunction against the company is scheduled for June.  Messages left at the company's headquarters were not answered. No one was available to take calls at other branch locations.  Thursday's action was the latest in a series filed by the commission to crack down on fraudulent talent agencies. At the commission's request, a federal court in New Jersey also has barred National Talent Associates Inc. from misrepresenting its ability to find high-paying modeling and acting jobs for children.  The Fairfield, N.J., company had agreed to settle commission charges initially filed in 1974 by agreeing to disclose specified information and provide consumers with a three-day cooling-off period when signing a contract. But the FTC charged that the company violated this consent order.

Under the court injunction, National Talent Associates cannot misrepresent the expertise of its sales agents in picking out potential models or entertainers. The defendants, who also have offices in Philadelphia, New York, Chicago and Minneapolis, have been ordered to pay a $160,000 civil penalty.

NTA declined to comment on the case Thursday.
Earlier this week, the FTC filed suit in U.S. District Court in Alexandria, Va., against three modeling firms it charged with operating together ``to induce consumers to purchase their talent management services.''

In its complaint, the commission alleges that the Model 1 Inc., Erickson Agency Inc., and Creative Talent Management Inc. falsely represented themselves as selectively scouting for models and actors when in fact the companies accept all candidates who make a deposit.

Tips on Avoiding Bogus Talent Scout

Some tips from the Federal Trade Commission on avoiding talent scout scams:

- Steer clear of modeling companies that require you to use a specific photographer.  Compare fees and the work quality of several photographers.

- Be suspicious if a company requires an upfront fee to serve as your agent.

- Be cautious if the school has a special referral relationship with a specific modeling agency. The two could be splitting your fees, or the agency may not be suited to your needs.

- Avoid high-pressure sales tactics. Never sign a document without reading and understanding it first. Ask for a blank copy of the contract to take home and review with someone you trust. If the company refuses, walk away.

- Be wary of claims about high salaries. Successful models in small markets can earn $75 to $150 an hour, but the work is irregular.

- Ask for the names, addresses and phone numbers of models and actors who have secured successful work recently based on the company's training.

- Ask your local Better Business Bureau, consumer protection agency and state attorney general's office if there are any unresolved consumer complaints on file about the company.

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