After the Fair Trade Commission ruled that 8 major entertainment companies had to revise their contracts, SM Entertainment has accepted the ruling and modified theirs.
SM Entertainment released a press statement following the FTC report on unfair contract clauses stating that they would remove the problematic clause. SM Entertainment’s statement is as follows,
“Hello, this is SM Entertainment.
We would like to follow up to the Fair Trade Commission’s report of the improvement of unfair contract clauses between entertainment agencies and trainees. SM Entertainment was investigated as part of this report.
The corrective action is based off of Article 6, Section 3 of the ‘Standard Exclusive Contract for Popular Culture and Arts’ which is also given to trainees. Because the FTC opinion on this was that it was unfair, and the FTC wants to modify this clause as a whole, we will ultimately be deleting this provision.
The original clause stated that the person under contract should not engage in any activity that may harm the honor of the artist themselves, other artists within the company, or the company itself. After our amendment, this clause will be deleted.”
— SM Entertainment
Source: Sports Chosun
