The company had subcontractors make 243 edits to VTuber's videos and documents without paying
Image via Cover Corporation's website
© Cover Corporation
Cover Corporation, the parent company of the company that manages hololive production VTuber, received on Friday recommendations and instructions from the Japan Fair Trade Commission (JFTC), after they violated the Contract Act side by requiring subcontractors to perform 243 VTuber video edits without compensation.
According to JFTC, the company commissioned 23 businesses, including 19 freelancers, to produce videos, illustrations and other materials used in VTuber videos from April 2022 to December 2023 and requires businesses to make a total of 243 revisions at no cost, although businesses are not responsible for those revisions.
In addition, when the company asked 29 businesses to re-produce the video, the company did not pay the fees on time. The late payment period lasted up to one year and seven months, and the late payment interest amounted to a total of about 1.15 million yen (about 7,495 USD).
Cover Corporation paid the stipulated price at the time of order and late interest, and the JFTC issued recommendations and guidance to prevent a similar incident from occurring again.
Cover Corporation also released a statement on Friday about the incident and detailed that the transactions were made. According to JFTC recommendations, the orders were placed between April 2022 and February 2024, mainly weak for creating Live2D and 3D models,”[điều đó] has caused significant inconvenience to contractors by requiring them to make excessive revisions or lengthen projects as a result of incorrect wording in specifications and instructions. order in writing.”
The company further explained that during the stated period, the number of transactions it managed increased significantly due to its rapid pace of expansion. The company admitted that this had led to oversight and delays when dealing with contractors as well as shortcomings in internal structures and staff training.
The company apologizes to the contractors and all stakeholders for any inconvenience caused, and states that all late payments and interest have been resolved but will continue to deliver Updated information on all issues as soon as possible.
Accordingly, the company also said that it is currently making improvements in all areas, such as recruiting new employees and revising trading processes, as well as reforming its internal structure, including improving information Internal reports during the conference. employee training.
Cover Corporation announced in March that it was establishing its first overseas Cover USA subsidiary in North America.
On November 1, a new law in Japan commonly known as the Free Work Act law will take effect, which requires business executives to clearly state the nature of their work when dealing with employees. freelance workers.
Source: website, Livedoor News