SM Entertainment has announced it's made updates to trainee contracts following the Fair Trade Commission's recent ruling on unjust contract terms.

On March 7, SM Entertainment revealed it deleted the below stipulations from their contracts with trainees, and both changes are in accordance with the FTC's ruling against "claiming arbitrary reasons to terminate a trainee contract, such as due to defamation of the company name or investment losses. (They will be prohibited.)"

The following have been deleted from SME's trainee contracts:

"Shall not engage in any activity that damages the dignity of a public arts or cultural artist to the detriment of entertainment activities and shall not act in such a way as to damage the honor or credibility of the entertainer of the party or its owner."

"Shall not engage in any activity that damages the dignity of a public arts or cultural artist so as to cause interference with entertainment activities and shall not act in a manner that would undermine the honor or credibility of the entertainer or its affiliated artists."

As previously reported, the Fair Trade Commission (FTC) stated a total of 6 unjust terms within trainee contracts used by large-scale entertainment companies have been corrected.

What are your thoughts on SME's changes?