One of the largest scams run by agents is the sales that they try to make to clients to generate extra income. A true agent that is following the code of professional ethics considered standard in the industry charges for nothing. The agent only makes money when his talent makes money, which he then takes a percentage of. Agents who charge for sign up fees, photos, acting lessons, consulting services or anything similar are not ethical agents.
One would like to think that this problem has been reduced in recent years, but for generations in Hollywood, the "casting couch" mentality was applied by corrupt agents, producers and directors. Young actresses were led on to believe that the exchange of sexual favors would garner them parts in the pictures. This sort of offense would today be considered an ethical breach of the gravest kind and might also result in criminal charges.
An agent who guarantees talent any kind of work is operating an unethical agency. Usually, this promise is an outright lie. No agent working in the normal confines of the industry can typically promise anyone a job of any kind, as they have no control over who is actually hired. One exception to this rule is if the talent has already been offered a job and is looking to an agent to represent him in negotiations. The Entertainment Code of Ethics used as the standard for ethics in the industry in Toronto states: "An agent will make no claims or guarantees of employment to prospective clients that cannot be immediately substantiated."
An agent needs to stick to the agency side of the film business. Once an agent starts venturing into other sides of the business he treads perilously close to a conflict of interest. One area where an agent absolutely should not be involved is in film production. For an agent to purport to advocate for his clients rights while at the same time doing the hiring is a clear conflict of interest and ethical violation. This was made clear in the 1960s when the agency MCA purchased Universal Pictures and was eventually told that it had to either be an agency or a producer, but not both.