Tom Syndicate and others were paid $30,000 for positive XboxOne promos
The US Federal Trade Commission has found that Machinima paid a group of YouTubers tens of thousands of dollars to promote the launch of Microsoft’s Xbox One without declaring the videos were the result of a lucrative advertising deal.
As part of the deal the videos had to “showcase Microsoft products in positive light”.
YouTuber Syndicate was paid $30,000 and SkyVsGaming $15,000 as part of the deal. Neither disclosed that Machinima paid them to create and upload their videos.
Machinima then paid more YouTubers a total of $25,000 to create videos that “could not contain anything negative or disparaging regarding Machinima, Xbox One, or any launch title” and “keep confidential at all times all matters relating to [the] agreement.”
The FTC found that the promotions were not independently produced or impartial and labelled them “false and misleading”.
“In numerous instances, [Machinima] has failed to disclose, or disclose adequately, that the individuals who posted the reviews were compensated in connection with their endorsements,” it said.
“This fact would be material to consumers in their purchasing decisions regarding Xbox One and the Launch Titles. The failure to disclose this fact, in light of the representations made, was, and is, a deceptive practice.”
Posted:
Related Forum: Xbox Forum
Source: https://www.vg247.com/2015/09/03/youtubers-paid-for-false-misleading-xbox-one-promo/
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Comments
RinPosted:
You guys are saying that this is a common business practice and that it's the same as TV advertisements. That is not the case here.
People are getting worked up because they purposely left out that the videos were an advertisement and they were being sponsored by the companies to make them.
No one is getting angry over them making money from this. If you want to promote a product, go right ahead. But don't mislead your viewers and not state that you're being sponsored to make a video.
People are getting worked up because they purposely left out that the videos were an advertisement and they were being sponsored by the companies to make them.
No one is getting angry over them making money from this. If you want to promote a product, go right ahead. But don't mislead your viewers and not state that you're being sponsored to make a video.
ConsolePosted:
MaintainODSTTwiiistR Sony have done this too so all you sony fans can't really say much
Proof to argument? I'd love to see your claims.
No proof is needed. It's just common sense and having a mind of running a corporation. Seems like something that you lack. Sorry to say bud.
GOT EM!!!
Like DH_JR Said its the same as TV advertisement. They would be smart to target somethings kids or grown adults love to watch. Youtube is basically the new age TV.
voxaziPosted:
Thank god Sony is at least throwing their money at exclusivity deals rather than L0l So funny dank meme youtubers
MaintainPosted:
ODSTTwiiistR Sony have done this too so all you sony fans can't really say much
Proof to argument? I'd love to see your claims.
No proof is needed. It's just common sense and having a mind of running a corporation. Seems like something that you lack. Sorry to say bud.
ClioPosted:
UZl Damn 30k for a good review. I wouldn't of turn that down either.
Yea, people are here hating, but no doubt they would say yes to the offer. Id certainly say yes
ODSTPosted:
TwiiistR Sony have done this too so all you sony fans can't really say much
Proof to argument? I'd love to see your claims.
TBEPosted:
Wow I watched a video of Syndicate's with him with Xbox stuff in the background and he said this is not advertising it's just stuff there.
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