YouTube Network, FTC Reach Deal In Paid-Endorsements Row

Law360, Los Angeles (September 3, 2015, 4:37 PM EDT) -- One of YouTube LLC's biggest multichannel networks has settled deceptive-advertising charges by the Federal Trade Commission, which claimed it paid influential publishers to post videos endorsing Microsoft Inc.'s Xbox One system, the agency said Wednesday.

In an agreement containing a consent order, the FTC accused Machinima Inc. of not sufficiently disclosing that the so-called "influencer videos" were part of an Xbox One marketing campaign managed by Microsoft's advertising agency, Starcom MediaVest Group.

Machinima allegedly promised Starcom that the videos would be viewed at least 19 million times. The FTC further claimed the influencers were compensated with thousands of dollars to make...

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