TYGlobe

MCN institutions (Multi-Channel Network) purport to be able to help you with account incubation, follower growth and traffic monetization. However, once disputes arise out of cooperation, you may suffer unlawful withholding of earnings in minor cases, or be held liable for exorbitant liquidated damages in serious cases. Based on a series of authentic judicial precedents, this article will present the legal pitfalls that you should be most vigilant against throughout the whole process of contract execution, contract performance and contract termination, and provide practical response strategies.

I. "Cooperative Relationship" or "Labor Relationship"? Do Not Be Misled by the Contract Title! Case Review: Xiao D signed a Host Contract, which stipulates live streaming duration, code of conduct and revenue sharing. Two months later, he intended to terminate the contract due to excessive work pressure, and the company claimed RMB 100,000 in damages from him.

Court Judgment: The company's claims are dismissed.

Grounds: Although the contract is denominated as a "cooperation" contract, the company imposes strict management over Xiao D's live streaming time, content and interactive activities. Xiao D is highly subordinate to the company in terms of personality, economic dependence and organizational affiliation, which constitutes a de facto labor relationship.

Cooperation Guide ✅ Key Identification Points: If you meet any of the following circumstances, you are most likely to be deemed as a laborer rather than a "partner":

• The company stipulates that you are required to broadcast for a specified number of hours per day/per week;

l The live streaming content, speech scripts and dress code shall be uniformly arranged by the company.

l Income is mainly derived from the "guaranteed base salary" paid by the company.

l Leave applications and late arrivals shall be subject to approval; failure to obtain such approval will result in salary deduction.

✅ Rights You May Assert: - To demand the conclusion of a labor contract and the payment of social insurance premiums;

• No liquidated damages shall be paid upon contract termination (Generally, no liquidated damages apply in labor relations, except in cases involving specialized training);

• If you are unlawfully dismissed, you shall be entitled to claim damages.

【Lawyer's Tips】 A must-ask question prior to signing the contract: "If I intend to terminate the contractual relationship, how much compensation am I liable to pay?" If the other party replies that "it shall be handled in accordance with the contract", you must carefully examine whether the contract de facto constitutes a labor relationship.

II. Livestreaming Has Clear Bottom Lines! Reject Non-compliant Instructions Such as Borderline Violation and Fake Romantic Relationship Case Review: The brokerage company instructed Xiao G to send ambiguous messages, deliver suggestive items to the "top-ranked gifter on the livestream leaderboard", and even feign a romantic relationship with the said gifter to induce him to give virtual rewards. After Xiao G refused the aforesaid instructions, her remuneration was arbitrarily deducted by the company, and she was forced to terminate the contract. The company then sued her for breach of contract.

Court Judgment: The conduct of the company violates public order and good morals, which constitutes a fundamental breach of contract; Xiao G is not in breach of contract, and the company shall pay the unpaid wages.

Cooperation Guidelines ✅ We resolutely reject any request in violation of the *Code of Conduct for Online Anchors*, including:

l Inducing users to make irrational tipping;

l Disseminating vulgar or soft pornographic content;

• False representation of identity (e.g. falsely claiming to be single, or a member of the wealthy second generation)

· False publicity of commodity efficacy

✅ How to Protect Yourself: l All work instructions shall be kept in written form (via WeChat, e-mail) for record as far as possible.

l In case of oral instructions, audio recording is permissible (you shall notify the other party thereof; unilateral audio recording is admissible as evidence in some regions of China).

• It shall be explicitly stipulated in the contract that: "Party B shall have the right to refuse any work arrangement that violates laws, regulations and public order and good morals."

【Important Notice】You shall not be held solely legally liable for the adverse consequences arising from the MCN's requirement that you "chase traffic".