US FTC Cracks Down on Warner Bros for Sponsored YouTube Game Reviews

Advertisement
By Andrea Peterson, The Washington Post | Updated: 12 July 2016 18:12 IST
Video games are a big deal on YouTube. Some video game YouTubers have millions of followers who tune in to watch them review games and have turned their channels into full-time jobs. But it can be hard for viewers to tell when video makers are getting paid big bucks to promote a game - and now government regulators are cracking down on those poorly disclosed deals.

The Federal Trade Commission announced Monday that it has reached a settlement with Warner Bros. Home Entertainment over what the agency deemed a deceptive marketing campaign for the 2014 game "Middle Earth: Shadow of Mordor," which involved major payoffs to big names in the world of YouTube gaming in exchange for positive coverage.

Warner Bros., the FTC alleges, paid popular YouTubers tens of thousands of dollars to promote the game via a campaign managed by advertising company Plaid Social Labs. The blitz included a sponsored gameplay video from PewDiePie - one of the biggest names on YouTube. PewDiePie's video alone has attracted more than 3.7 million views to date.

Advertisement

Warner Bros. gave YouTubers strict instructions to say only positive things about the game and stay silent about bugs they encountered, according to the FTC. Its contracts with the vloggers also demanded preapproval of the videos, the agency alleges.

But the company didn't make the YouTubers disclose that they were paid to promote the game in their actual videos, where viewers would actually see them, according to the FTC. Instead, it told them to include a disclosure in the video description, but below a lot of other information that pushed "the vast majority" of the sponsorship disclosures down so far that they could be seen only if a viewer hit a "Show More" button.

Because of that placement, the disclosures also didn't show up when the YouTubers shared their videos on Twitter or Facebook - social media promotion the company also required them to do, according to the FTC. And in some cases, the disclosures included way down in the descriptions of videos revealed only that a YouTuber had received a free early copy of the game, not that they'd been paid cash to make what was essentially an ad, the FTC alleges.

Under the settlement agreement, Warner Bros. will be barred from carrying out that sort of campaign in the future without more prominent disclosures.

Advertisement

"Consumers have the right to know if reviewers are providing their own opinions or paid sales pitches," said Jessica Rich, director of the FTC's Bureau of Consumer Protection, in a press release. Warner Bros. did not immediately respond to a request for comment on the settlement.

The FTC has long had guidelines for how people should disclose when they have been paid to endorse a product online, but this settlement marks the first time the agency has brought an enforcement action in the online video sponsorship market. Given the major push towards livestreaming from social media giants like Facebook and Twitter, it probably won't be its last.

Advertisement

© 2016 The Washington Post

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. OnePlus 16 vs iQOO 16: Price and Specifications Compared
  2. Best Phones With Telephoto Cameras Under Rs. 40,000
  1. Samsung Galaxy F70 5G With 5,000mAh Battery, 50-Megapixel Camera Goes on Sale in India: Price, Offers
  2. Apple ‘Pro and Tell’ Event Set for Next Week; First MacBook With Touchscreen, New iPad Mini and More Expected to Launch
  3. Cysic Shuts Down Bridge After Attacker Illegally Creates 10 Million CYS Tokens
  4. JPM Coin Arrives on Ethereum as JPMorgan Expands Institutional Payments
  5. Vivo V80 FE Reportedly Spotted on BIS Certification Website, India Launch Seems Imminent
  6. Airtel’s New Recharges in India Announced: Rs. 185, Rs. 203 and Rs. 206 Voice-Only Plans Details
  7. Vivo X500 Ultra Leak Reveals Launch Timeline, Chipset, Display and Key Specifications
  8. iQOO Neo 12 Launch Date Announced; Design, Colour Options Teased
  9. Qubic Halts Chain as Attacker Exploits Weak Seeds to Drain 1,400 Wallets
  10. iPhone Duo Battery Capacity Revealed Days Before Foldable Goes on Sale
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.