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Fair Trade Commission says talent agencies could be violating Antimonopoly Act

TOKYO (TR) – The results of a survey conducted by the Fair Trade Commission on the relationship between entertainers and talent agencies has revealed that the industry could be rife with practices that violate the Antimonopoly Act.

Participants in the survey, conducted from April to November, included actors, television personalities and employees at talent agencies. It was done through questionnaires and interviews. The results were released on December 26.

In interviews with entertainers, some said they had been hindered by their agencies when it came to transferring to other agencies or going independent, causing the FTC to point out that this could be problematic, reports NHK (Dec. 26).

Some entertainers reported that their agencies had threatened them about transferring to other agencies or going independent, saying they would no longer be able to perform in the entertainment industry. They also said that the agencies had pressured broadcasting stations not to feature entertainers who had left the agencies.

Some also reported that they had been forced to change their stage names after leaving the agencies, as the agencies held the rights to their stage names.

Verbal contracts

The FTC pointed out that such actions may be problematic under the Antimonopoly Act. “Talent agencies should not make statements or take actions that lead entertainers to hesitate to transfer or become independent,” a representative said.

In addition, the survey of agencies showed that more than 20 percent of agencies make all contracts with entertainers verbally. As well, approximately 10 percent of agencies do not explicitly explain the contents of the contracts.

Based on the results of this survey, the FTC will formulate guidelines regarding contracts between entertainers and talent agencies. It will then take strict action if any violations of the law are found.

Entertainers raised other concerns regarding talent agencies, including low remuneration that is not negotiable and the coercion to do work that requires excessive exposure of one’s body.

Relationships between broadcasting stations and talent agencies

The survey also asked about the relationships between broadcasting stations and talent agencies through questionnaires and interviews.

“If we voice our opinions about contract terms to the broadcasting station, we will lose work. So, we cannot negotiate,” one agency said. Another said, “We lost work at the last minute due to circumstances connected to a broadcasting station, but there was no compensation.”

The FTC pointed out that these actions may also be problematic under the Antimonopoly Act.

Relationships between broadcasting stations and talent agencies

The Japan Actors Union, which boasts approximately 2,500 members who perform in films, on television and stage, is also concerned about the existing environment in the entertainment industry.

Regarding the results of the FTC’s investigation, actor and Japan Actors Union vice-chairman Michihiro Ikemizu said, “Even now, there are few cases in which the contents of contracts, especially those for film appearances, are clearly stated. So, we hope that the investigation will lead to appropriate discussions with agencies and the creation of rules regarding working environment.”

The vice-chairman added that it is also common for actors not to be informed of the amount of compensation in advance.

“Agencies have overwhelming power”

The results are in line with a separate survey conducted in September by the Japan Freelance League, an organization for freelance actors. Participants in the latter made such comments about the industry as:

“We didn’t sign any contracts.”
“It was just a vague verbal agreement.”
“It wasn’t disclosed until my performance fee was transferred.”
“I wish they’d at least specify the working hours and amount of compensation.”

Ikemizu said, “Actors want to be seen in the public eye, but it’s the agencies that look after them, and the agencies have overwhelming power. I hope that this government survey will lead to proper discussions with agencies and production companies, and that rules on things like working environment and guarantees will be established.”

At a press conference, JFTC Director Hiroshi Mabuchi said, “We have seen a large number of entertainers transferring and becoming independent. In order to prevent potentially problematic behavior, we have made the contents of the report known to concerned businesses. We will continue to closely monitor the progress of initiatives by businesses while working closely with relevant ministries and agencies to ensure that efforts to resolve the issue are made.”