Facts

The Federal Trade Commission filed an action against Machinima Inc. for alleged violations of the Federal Trade Commission Act.

PLAINTIFF'S CONTENTIONS:
Defendant allegedly violated the FTC Act by posting endorsement videos that deceived consumers. Defendants paid endorsers to post positive reviews about Microsoft's Xbox One system and several games without disclosing that the "influencers" were paid endorsers.

Result

The parties entered into a consent agreement under which Machinima agreed, among other things, to require its influencers to disclose whether any endorsements are sponsored, and to monitor its influencers for compliance with that requirement.

Other Information

COMMISSIONERS: Edith Ramirez, Julie Brill, Maureen K. Ohlhausen, Joshua D. Wright, Terrell McSweeny.