Any respected industry publication will tell you that the first rule of showbiz is "never pay upfront fees for representation".
The Advance Fee Talent Service Law (AFTS) was created in California, home to the entertainment industry, to underscore that idea and go further. Even though it is a California law, we feel that actors from other states should understand it as well, because many unscrupulous businesses intentially work in other states attempting to avoid this law while claiming that they have Hollywood connections.
The AFTS law was designed as a protection to consumers. The intent was to label certain business' as what they really are, and to protect consumers from companies who try to get around the California Talent Agency Act regulations by simply saying, "we are not a talent agency, we are a school" and yet they promise employment.
The newest law adds text that means that companies that want to charge you an upfront fee (for something like registration, modeling classes, or a talent competition) while indicating the services will lead to employment, must register with the state to be an Advance Fee Talent Service, and they must follow certain rules. If they don't register, they are operating in violation of the law. You can find a listing of companies who have registered here: http://www.dir.ca.gov/dlse/AFTS.htm
An example of a case where a company was found to be in violation of the Advance Fee Talent Service Law (among other things): http://www.dir.ca.gov/dlse/TAC/40-05.pdf
More on Advance Fee Talent Services: http://www.modelingscams.org/afts.html
For a similar view about advance fees in other states: http://www.ftc.gov/bcp/conline/pubs/services/model.shtm
The big picture is that Advance Fee Talent Services, those businesses that charge a fee in advance are not using an industry standard business model, and thus should be looked at with a critical eye. The law regulates the business relationship to increase the protection of the consumer. In California, many of these business' could be illegal, due to lack of registration or by engaging in prohibited acts.
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SB1687 – Enacted in CA January 1, 2005
Previous Advance Fee Talent Law regulated “Services” who charge up-front fees (any advance fee prior to the artist obtaining actual employment) by:
- prohibiting them from making false or misleading advertisements,
- referring the artist to anyone who charges a fee in which the “service” has a financial interest
- accepting any compensation for referring an artist to a person that charges a fee
- requires Advance Fee Services to post a $10,000 surety bond
- requires the disclosure of contractual agreements,
- requires a right to refund of any advance fee paid, and to cancel any contract for advance fee talent services.
Highlight of Changes:
Adds to the definition of advance-fee talent services to now include businesses that provide:
- Photographs
- Lessons
- Coaching
- Procuring, offering, promising, or attempting to procure auditions (not just work) for the artist
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