Today was a good day for ethical disclosure in the form of the FTC busting Machinima for shilling Xbox Ones via their network partner Youtubers without disclosing their intentions or even instructing their Youtube partners of said ethical violations. The FTC posted about it today on their blog and their Twitter account, and boy oh boy is Machinima in some hot water. 

Machinima will have to take steps to fix this debacle or suffer massive fines from the FTC. The public can send comments about this to the FTC here if you want to assist in expediting the process.  This is a big deal because Machinima is one of the biggest, if not THE biggest, Youtube partnership network in the world. The implications of this could impact their reputation if they don’t handle it swiftly and amicably. Here’s to hoping this gets resolved. Check out some tweets about it showcasing the FTC broadcasting about it.

The FTC clearly states that vloggers fall under the old school advertiser spectrum and have to disclose any gifts they receive for promotional services before promoting said service or product. The official post on the FTC blog about is here and here. What the future holds for Machinima is up to them. The FTC aren’t some angry internet commentators, they are the freaking FTC. This is definitely interesting as over the years I’ve read so many horror stories about how Machinima treats their partners so it’s just apropos at this point. Hopefully it gets resolved soon and sets a precedent in the vlogger /Youtube partner company community to not do like Machinima. The bigger they are, the harder they fall. Nobody can escape the all seeing eye of FTC…

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