Cover Corporation, the parent company of the hololive productions VTuber management company, received on Friday recommendations and guidance from the Japan Fair Trade Commission (JFTC), after it violated the Subcontract Act by having subcontractors make 243 revisions of VTuber videos without compensation.
Cover Corporation announced in March that it was establishing its first overseas subsidiary Cover USA in North America.
Additionally, when the company asked 29 businesses to re-produce videos, the company did not pay the fees on time.
The company further explained that during the stated period, the number of transactions the company was managing increased significantly due to its rapid expansion.