Machinima reaches an agreement with FCC after failing to properly disclose Xbox One advertisements.
[dropcap size=small]T[/dropcap]he popular gaming site and YouTube channel Machinima has just agreed to settle charges made by the Federal Trade Commission over allegations that the website disguised paid endorsements for the Xbox One as the personal opinions of certain YouTubers.
Back in January of 2014, not long after the launch of the Xbox One, the FCC investigated Machinma’s Xbox One campaign, which outlined benefits to YouTubers who mentioned and used Xbox One content in their videos.
The FCC declared this to be “deceptive advertising,” as the videos made by the YouTubers did not have proper disclosure indicating that their content was more so an advertisement rather than personal opinion.
Here is Machinima reporting on the initial FCC investigation from early 2014.
https://www.youtube.com/watch?v=3ajHl1qzOII
Two YouTubers involved with this campaign and profited from it are Adam Dahlberg of the channel “SkyVSGaming,” and Tom Cassell of “TheSyndicateProject.” Both content producers did not disclose that they were being paid to speak positively about Xbox.
Since the initial investigation of last year, a settlement was recently between the FCC and Machinima to ensure this never happens again. Machinima now must “prominently disclose” promotional relationships they make, and YouTubers cannot be reimbursed unless they meet specific disclosure conditions as well.
Microsoft was not affected by this settlement, and they told GameInformer that:
“Microsoft was not aware of individual contracts Machinima had with their content providers as part of this promotion and we didn’t provide feedback on any of the videos, We have asked Machinima to not post any additional Xbox One content as part of this media buy and we have asked them to add disclaimers to the videos that were part of this program indicating they were part of paid advertising.”
The entire FCC report can be read here.
This whole situation is a complicated, and unfortunate mess. Now more than ever, consumers need to know if they are receiving a personal, or promoted endorsement for a product. Full disclosures need to be made whenever applicable.
Transparency and honesty are not just virtues of journalism. They are basic rights entitled to all.
