The Secret Payment to YouTubers for Advertisements Does Not Breach the FTC Guidelines

The YouTubers who are being paid in for positive coverage of games and the companies who pay them should not worry as it doesn’t breach the Federal Trade Commission’s guidelines, according to reports.

After news leaked last week concerning EA and Microsoft paying distinguished YouTube personalities for positive coverage of their games, queries of ethics were thrown about the matter. In an interview to a leading tabloid, Betsy Lordan, a representative of the FTC’s office of Public Affairs, said that according to Federal Trade Commission guidelines, paid promotions are fine as long as it’s made clear that the endorser is being paid. These are in place “to help both the advertisers and endorsers comply with federal advertising law”, but on their own, “are not lawfully enforceable”.

If these guidelines aren’t followed, no direct penalty is applicable. However, the Federal Trade Commission might conduct an investigation into the violating parties to work out whether or not federal advertising law has been broken.

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