FTC settles with Machinima in Xbox One deceptive advertising case
If you saw a video from a YouTube gamer praising the Xbox One during its launch in 2013, that could have been the result of a marketing campaign that failed to disclose itself upfront to customers. The Federal Trade Commission has now entered into a settlement with the company in charge of that campaign, Machinima, claiming that it engaged in deceptive conduct.
The FTC said:
Under the terms of the settlement, Machinima is now prohibited from engaging in similar conduct in the future, and they must make sure that any YouTube "influencers" clearly disclose they are being compensated for endorsements by the company. Microsoft was also investigated as part of this report, but the FTC said today that while it was "responsible for the influencers' failure to disclose their material connection" it added that this particular situation appears to be an isolated incident and has closed its case against Microsoft.
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