The studio's home entertainment distribution arm neglected to disclose that it paid online "influencers" thousands of dollars to share positive reviews of a video game on social media.
Under a proposed Federal Trade Commission settlement, Warner Bros. is barred from hiding similar disclosures in the future, and cannot misrepresent that sponsored content—including gameplay videos—are the objective, independent opinions of enthusiasts or influencers.
"Consumers have the right to know if reviewers are providing their own opinions or paid sales pitches," Jessica Rich, director of the FTC's Bureau of Consumer Protection, said in a statement. "Companies like Warner Brothers need to be straight with consumers in their online ad campaigns."
In late 2014, Warner Bros. launched an online marketing campaign to generate buzz about fantasy role-playing game Middle Earth: Shadow of Mordor (pictured)—based loosely on The Hobbit and Lord of the Rings trilogies.
According to the FTC, Warner Bros. hired online influencers—including YouTube star PewDiePie—to develop sponsored gameplay videos; the Swedish comedian and video producer's endorsement alone was viewed more than 3.7 million times.
The company reportedly paid each promoter, gave them a free advance-release version of the game, and told them how to promote it—i.e. positively, without disclosing bugs or glitches.
Such videos are not illegal. But the FTC alleges that Warner Bros. instructed influencers to include sponsorship disclosures not in the clips themselves, but in the box below the video—visible only if consumers click on the "Show More" button, which does not appear when YouTube videos are posted to Facebook or Twitter.
Assuming the settlement is approved by the FTC next month, Warner Bros. (or any entity it hires to conduct an influencer campaign) must follow explicit steps detailed by the FTC. That includes educating influencers regarding sponsorship disclosures, monitoring sponsored influencer videos for compliance, and, under certain circumstances, terminating or withholding payment from influencers or ad agencies for non-compliance.
Source: pcmag.com
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