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In the Matter of Warner Bros. Home Entertainment, Inc., In the Matter of Warner Bros. Home Entertainment, Inc., No. 152 3034 (Order Entered July 11, 2016) No. 152 3034 (Order Entered July 11, 2016)
In marketing its Middle Earth: Shadow of Mordor video game, Warner Bros. used paid online "influencers" to post positive gameplay videos on social media sites. According to the Federal Trade Commission (FTC) complaint, the entertainment company failed to adequately disclose that the videos were sponsored content and that it had paid influencers thousands of dollars for their online posts. The settlement prohibits Warner Bros. from misrepresenting that any gameplay videos are independent opinions by impartial gamers and requires the company to clearly and conspicuously disclose its relationship with influencers. The order also specifies measures that Warner Bros. and any entities it hires to conduct an influencer campaign must take to ensure that future campaigns comply with the order, including "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." This settlement is the second major enforcement action the FTC has brought in connection with native advertising and sponsored content. View the press release. Read our summary of the FTC settlement with Lord & Taylor in Issue 2.
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