Core Points - Douyin has introduced new regulations to protect live streamers from unreasonable penalties and ensure fair practices in contracts between agencies and streamers [3][4][7] - The regulations prohibit excessive penalty clauses, vague terms, false promises regarding contract termination, and deceptive practices that exploit information asymmetry [3][4][7] - The live streaming industry is facing challenges due to a decline in market conditions, leading to increased pressure on agencies to impose penalties on streamers [8][10][14] Group 1 - Douyin's new guidelines aim to standardize contracts between agencies and streamers, focusing on protecting streamer rights and promoting a healthy ecosystem [3][4] - Agencies are prohibited from setting unreasonable penalty amounts, which cannot exceed five times the total earnings of the streamer or the agency's investment [3][4] - The regulations also address issues such as withholding salaries and failing to fulfill promised services, which have been common practices among some agencies [5][6] Group 2 - The rise of penalty-related disputes has been attributed to the unique nature of the streamer profession, which combines elements of labor contracts and other non-traditional work arrangements [7] - The decline in the live streaming market has led to a surplus of streamer accounts, with nearly 193 million accounts opened and approximately 33.27 million active accounts as of May 2025 [10] - The competitive landscape remains intense, with agencies resorting to exploitative contract practices to maintain profitability amid declining market conditions [14]