Warner Settles FTC Allegations It Misled Consumers in Videogame Promotion
Warner Bros. Home Entertainment settled FTC allegations for allegedly not telling customers it paid online "influencers ... thousands of dollars" to post positive videos on social media sites like YouTube to promote the videogame Middle Earth: Shadow of Mordor, said…
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
the commission Monday in a news release. Commissioners voted 3-0 to issue an administrative complaint and accept the proposed consent agreement, which will be published in the Federal Register soon and available for public comment through Aug. 10. The consent order said Warner Bros. must "make such disclosures in the future and cannot misrepresent that sponsored content, including gameplay videos, are the objective, independent opinions of video game enthusiasts or influencers," the release said. In 2014, the company's ad agency Plaid Social Labs hired online influencers "to develop sponsored gameplay videos" and post them on YouTube, and promote them on Facebook and Twitter -- videos that were viewed more than 5.5 million times, the FTC said. It said Felix Kjellberg, who's known by his YouTube alias "PewDiePie," alone garnered more than 3.7 million views. The company paid influencers anywhere "from hundreds to tens of thousands of dollars," provided a free game in advance and instructed them to promote it "in a positive way and not disclose any bugs or glitches they found," the commission said. Not only did Warner Bros. fail to disclose it paid influencers, but the FTC alleged the company didn't tell influencers "to include sponsorship disclosures clearly and conspicuously in the video itself where consumers were likely to see or hear them." Instead, the influencers were told to post disclosures in a box below the video -- less likely to be seen by consumers, the commission said. In an emailed statement, Warner Bros. said it "always strives to be transparent with our customers and fans when working with social influencers, and we are committed to complying with the related FTC guidelines."