Machinima is an online entertainment network that has clips and teasers from video games. Apparently Machinima was paid by Microsoft an extra $3 per 1,000 views for videos that mentions the Xbox One (up to 1.25 million views per channel) on top of their regular payments. Ars Technica published a report saying that Machinima’s partners cannot informer viewers that they were paid to promote the Xbox One on top of agreeing that they cannot speak negatively about the Xbox One.
This is a violation of an FTC regulation that states: ?A connection between the endorser and the seller of the advertised product that might materially affect the weight or credibility of the endorsement.?
Machinima has around 8,500 affiliate partners worldwide so this deal could have been very lucrative.