We're almost two years removed from the launch of Microsoft's latest home console the Xbox One, but a recent controversy surrounding its launch has just cropped up today. VG24/7 reports that the company paid popular Youtube personalities up to $30,000 to falsely advertise the device in 2013.
According to the report, The US Federal Trade Commission has discovered that Machinima, a Youtube network home to many big names within the gaming community, paid some of its talents to 'showcase Microsoft's products in a positive light' while failing to disclose that these videos were paid for by Microsoft themselves.
Tom Cassell, a youtuber better known by his handle TheSyndicateProject, was one of the recipients of the false advertising dollars. Another vlogger by the name of Adam Dahlberg was also mentioned in the report.
"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," said the FTC in it's report.
Another payment scheme saw Machinima payout as much as $25,000 to youtubers that met certain viewership numbers.
According to the BBC, the whole deal was part of an agreement between Machinima and Starcom MediaVest, an online ad agency that handled the Xbox One's launch.
"When people see a product touted online, they have a right to know whether they're looking at an authentic opinion or a paid marketing pitch," said Jessica Rich, director of the FTC's bureau of consumer protection.
Machinima has vowed to be more transparent in the future and is changing it's policies to better reflect which videos are advertisements and which represent unbiased views.
"Machinima is actively and deeply committed to ensuring transparency with all of its social influencer campaigns," said the company in a statement.
