Dead Realm is a multiplayer survival horror game. Players take the reins of either the main character or a ghost. It looks like the sort of game custom-built for YouTube's ubiquitous Let's Play shows.
Turns out, the game was created by YouTubers who went on to promote their own product on their shows, neglecting to inform viewers of their financial stake.
Dead Realm was created by a company called 3BlackDot, founded by ex-Machinima staffers as well as successful YouTubers Tom "Syndicate" Cassell and Adam "SeaNanners" Montoya.
Their actions were a violation of Fair Trade Commission rules which state that "if an ad features an endorser who’s a relative or employee of the marketer, the ad is misleading unless the connection is made clear ... Knowing about the connection is important information for anyone evaluating the endorsement."
3BlackDot released a statement claiming that its involvement was well known by "the community," but did not address its reticence to speak of its connection in the video endorsements.
A few weeks after this damaging episode, the FTC released a report on a 2013 Xbox One marketing campaign organized by Machinima, in which the company paid YouTubers to speak positively about the console, without divulging the financial arrangement.
The FTC ruled that Machinima had engaged in deceptive advertising in creating the YouTube marketing campaign.
"When people see a product touted online, they have a right to know whether they're looking at an authentic opinion or a paid marketing pitch," said Jessica Rich, director of the Bureau of Consumer Protection. "That's true whether the endorsement appears in a video or any other media.