YouTube network 'deceived customers' with paid-for Xbox One videos
Federal Trade Commission settles a "deceptive marketing" campaign with Machinima.
The United States government has determined that some Xbox One video materials from around the time of the system's launch in November 2013 qualified as "deceptive marketing." The Federal Trade Commission (FTC) announced on Wednesday that popular YouTube network Machinima -- which claims to have more than 400 million unique subscribers -- has agreed to settle charges related to publishing positive videos about the Xbox One without disclosing it had been paid tens of thousands of dollars to do so. Microsoft, meanwhile, is mostly absolved of wrongdoing.
According to the FTC, Machinima paid YouTubers -- called "influencers" -- to post videos that spoke positively about the Xbox One and some of its games. This is not necessarily a problem, but the FTC alleges that the YouTubers "failed to adequately disclose" that they were being paid for what were presented as objective videos. A pair of YouTubers were paid $45,000 between them to publish two video reviews each, both of which beamed positive messages about Xbox One without stating that they were paid endorsements.
But does Microsoft bear any responsibility in this case? In short, not really.
We have followed up with Microsoft to see if the company has any further comment to provide. You can read the FTC's full complaint against Machinima here [PDF].
Earlier this year, the UK's Advertising Standards Authority said it has yet to receive one official complaint, despite widespread debate over clandestine paid game promotions on video websites such as Twitch and YouTube.