FTC Settles Deceptive Advertising Charges Against Xbox One Promoter

The FTC agreed to settle deceptive advertising charges against Machinima, an online entertainment network, it said in a news release Wednesday. Machinima allegedly paid “influencers” to post YouTube videos endorsing Microsoft’s Xbox One system and several games, but the influencers didn’t disclose that they were paid for their reviews, the release said. Under the proposed settlement, Machinima is prohibited from similar deceptive conduct and is required to ensure influencers clearly disclose when they're compensated, it said. “When people see a product touted online, they have a right to know whether they’re looking at an authentic opinion or a paid marketing pitch,” said FTC Consumer Protection Bureau Director Jessica Rich. The vote to issue the complaint and accept the proposed consent order for public comment was 5-0. Comments on the proposed settlement will be accepted until Oct. 2, after which a decision on making the consent order final will be made.