FTC Smackdown on Machinima

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The Federal Trade Commission released a report today detailing their settlement with Machinima, Inc. The company, based out of California, was investigated because they “failed to adequately disclose that they were being paid for their seemingly objective opinions”.

Basically Machinima ended up taking on sponsorship dollars from Starcom MediaVest Group for advertising an XBox One Marketing campaign. Problem is they had encouraged their Youtube channel influencers to post XBox One content without disclosing that they were sponsored posts.

All in all a pretty shady move by Machinima to sell ads without saying they are ads. I can see where this all becomes an issue but you all should read it for yourselves and leave a comment or two on your thoughts of these kinds of practices!

Read more HERE

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