FTC Probing Entertainer's Contracts with Agents

      March 24, 2009 11:50

      In the wake of the suicide of actress Jang Ja-yeon, the Fair Trade Commission has embarked on an investigation of so-called "slave" contracts between entertainers and their management agencies.

      "We have started investigating exclusive contracts between entertainers and small and medium-sized management firms," an FTC official said Monday. "After field investigation, we will take appropriate measures to correct unfair contracts."

      The FTC plans to look at clauses that infringe on the privacy of contracted entertainers, such as those that require them to take part in various activities to promote the agencies for free, and to constantly report their whereabouts to the agency. It will also look at unfair clauses that give the management the right to hand over the contract to a third party without the entertainer's consent.

      "We're going to draft a standard contract for entertainers in the first half of this year, and encourage some 500 management agencies to follow it," the FTC official said. The FTC in November 2008 investigated the contracts of 354 entertainers with 10 large management companies and ordered 204 of them to be corrected.

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