The Federal Trade Commission (FTC) has made an agreement with the Machinima entertainment network, settling allegations that the company paid prominent community members for favorable endorsements of the Xbox One video game system. The complaint alleges that to hide the perception of bias, commenters were never told to reveal they had been compensated for their remarks.
Ahead of the Xbox One’s 2013 release, Starcom MediaVest Group, a marketing firm representing Microsoft, hired Machinma to help generate buzz. Through the terms of the deal, Machinma, which is a prominent online community specializing in the production of video game-based streams and content, agreed to provide Starcom with 19 million video hits within a network of identified influencers.
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