FTC Charges Machinima With Deceptive Xbox One Advertising
The U.S. Federal Trade Commission (FTC) recently discovered that back when the Xbox One first came out at the end of 2013, the YouTube network Machinima paid popular YouTube personalities, like Adam Dahlberg, money to talk positively about the Xbox One. At the same time, it told its clients not to say anything about the deal to the public.
After a recent investigation, the FTC decided that this was deceptive advertisement, and said that Machinima has agreed to a settlement and will be prohibited from using such tactics in the future. The organization wrote:
In numerous instances, Respondent has failed to disclose, or disclose adequately, that the individuals who posted the reviews were compensated in connection with their endorsements. This fact would be material to consumers in their purchasing decisions regarding Xbox One and the Launch Titles. The failure to disclose this fact, in light of the representations made, was, and is, a deceptive practice.
What are your thoughts on media companies using such practices? Do you trust YouTubers when they talk about games and their recommendations?