It has recently been revealed that Microsoft and
Electronic Arts, the American developer and distributor of video games, have
been paying the creators of YouTube to promote their products while also
requiring the information about the payment to be kept undisclosed. Now, both
big businesses are under attack by the media for their unethical performance.
However, it seems as though, no matter how unethical the act, it doesn't
exactly violate the Federal Trade Commission's (FTC) guidelines.
When the issue was first discovered, it was made known that both Microsoft and Machinima, a video gaming network, agreed to pay YouTube for its promotion of the new Xbox One; $3 for every 1,000 page views. The agreement came with many other stipulations such as how long the promotion had to be, how the product was mentioned, as well as banning any negatives comments said by the creators of YouTube about the product or either company.
Though the secret transactions would seem rather illegal to most, according to the FTC, Microsoft and Electronic Arts have done nothing wrong in regards to the law. The biggest reason being is that the FTC guidelines are exactly that- just guidelines. They have no legal power in the way that if a company were to break one of the "rules," it doesn't mean everyone is getting arrested.
Punishing Microsoft or EA or even making them admit fault would be pretty difficult and would take a lot or time, effort, and money the FTC isn't going to waste. The backlash on these two from this so called "scandal" probably won't even be that noticeable. Sure people could boycott them all they wanted but both companies are so large, it more than likely won't even put a dent in their profits.
How many people do you know that use Microsoft Word or any other Microsoft function? Exactly. Everyone uses them. Nowadays, you cannot get through college or the business world without using Microsoft. So no matter how angry you are at them for their misconduct, you're still going to have to turn in your essays via Microsoft Word documents. Also, EA is the biggest marketer, publisher, developer, and distributor of video games in America. The only people they target are video gamers and I highly doubt that they're going to are that they paid YouTube to promote a product a majority of them have bought or want to buy. Video gamers are still going to purchase their products, no matter who or how much they pay.
This isn't the first time a big business has gotten away with slipping money under the table simply because they're a big business. Personally, I think the FTC should have more of a legal standing instead of just "guidelines" that businesses like Microsoft and EA can brush under the rug and know they won't receive any harsh punishment. Plenty of big businesses pay others off in order to get ahead. Giving the FTC more legal power would give smaller businesses to get ahead without having to resort to unethical tactics.
When the issue was first discovered, it was made known that both Microsoft and Machinima, a video gaming network, agreed to pay YouTube for its promotion of the new Xbox One; $3 for every 1,000 page views. The agreement came with many other stipulations such as how long the promotion had to be, how the product was mentioned, as well as banning any negatives comments said by the creators of YouTube about the product or either company.
Though the secret transactions would seem rather illegal to most, according to the FTC, Microsoft and Electronic Arts have done nothing wrong in regards to the law. The biggest reason being is that the FTC guidelines are exactly that- just guidelines. They have no legal power in the way that if a company were to break one of the "rules," it doesn't mean everyone is getting arrested.
Punishing Microsoft or EA or even making them admit fault would be pretty difficult and would take a lot or time, effort, and money the FTC isn't going to waste. The backlash on these two from this so called "scandal" probably won't even be that noticeable. Sure people could boycott them all they wanted but both companies are so large, it more than likely won't even put a dent in their profits.
How many people do you know that use Microsoft Word or any other Microsoft function? Exactly. Everyone uses them. Nowadays, you cannot get through college or the business world without using Microsoft. So no matter how angry you are at them for their misconduct, you're still going to have to turn in your essays via Microsoft Word documents. Also, EA is the biggest marketer, publisher, developer, and distributor of video games in America. The only people they target are video gamers and I highly doubt that they're going to are that they paid YouTube to promote a product a majority of them have bought or want to buy. Video gamers are still going to purchase their products, no matter who or how much they pay.
This isn't the first time a big business has gotten away with slipping money under the table simply because they're a big business. Personally, I think the FTC should have more of a legal standing instead of just "guidelines" that businesses like Microsoft and EA can brush under the rug and know they won't receive any harsh punishment. Plenty of big businesses pay others off in order to get ahead. Giving the FTC more legal power would give smaller businesses to get ahead without having to resort to unethical tactics.
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