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Mr Puggsly said:
Figgycal said:

I'll repost my comment since you missed it:

OP is missing the bit that actually makes this news worthy: The arrangement as described might go against the Federal Trade Commission's (FTC) guidelines for the use of endorsements in advertising, which demand full disclosure when there is "a connection between the endorser and the seller of the advertised product that might materially affect the weight or credibility of the endorsement."

As long as people aren't being mislead, I don't see anything wrong.

So make a video talking about the console, talk about the games you're playing, and avoid shitting on the products. That seems like pretty straight forward advertising to me.

You're inherently misleading if you're not allowed to say anything negative about the console. You're definitely misleading if you're getting paid to talk about the console and keep it hidden (also illegal btw).

If you recommended that I buy an Xbox One, I would take it as a satisfied customer suggesting I buy a product you enjoy. If I find out that you were paid to tell me to buy the Xbox One than my opinion of your suggestion changes completely.

Which is essentially what is going on here. People are quick to hate on MS though. The blame could be on Machinima's side.