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Update: FTC Censures Machinima Over Failure to Disclose Paid Xbox One Endorsements | Power Up Gaming
The United States Federal Trade Commission has today slammed multi-channel network giant Machinima over a 'deceptive' campaign it ran to encourage its partners to promote Microsoft's Xbox One console. According to the official report the FTC released today after conducting a substantial investigation, in mid-2013 Machinima "submitted a proposal to Starcom and Microsoft to market the Xbox One and the launch titles on YouTube network.... proposed leveraging a group of 'influencers' that could 'incentivize to create content'." Basically, the report lays out that Machinima allegedly took some of its personalities and had them make Microsoft specific content in return for money or other incentives. While there isn't a problem with that, per se, the personalities never told their viewers they were sponsored by Microsoft. The report continues, saying that " entered into a written agreement with Starcom to provide advertising on behalf of Microsoft as outlined... promised that the