Google Translated news article:
Recommendation to Cover for violating the Subcontract Act: Free re-editing of VTuber videos - Japan Fair Trade Commission
October 25, 2024 16:47
On the 25th, the Japan Fair Trade Commission recommended that Cover (Tokyo), a company listed on the Tokyo Stock Exchange Growth Section, take measures to prevent recurrence of violations of the Subcontract Act for making subcontractors redo videos for virtual YouTubers (VTubers) free of charge.
The company is involved in the management of Hololive Productions, which includes the female VTuber group Hololive.
According to the Japan Fair Trade Commission, from April 2022 to February 2023, Cover had 23 businesses, including freelancers who had been commissioned to produce videos, make a total of 243 revisions free of charge after receiving the videos that were unclear whether they were necessary based on the specifications set at the time of ordering.
Separate from the recommendation, the company has also instructed 29 businesses not to repeat the failure to pay approximately 1.15 million yen in late interest that arose from the payment deadline being missed due to re-production of videos. The longest payment delay was approximately one year and seven months. The company says it has already paid the amount including the late interest.
Regarding freelancers working as individuals, a new law will come into effect in November that will require ordering businesses to clearly state the details of the work. The FTC has been conducting a fact-finding survey to support creators since April, and plans to publish the results by the end of the year.