Warner Bros. Home Entertainment Inc.; Analysis of Proposed Consent Order to Aid Public Comment, 46078-46080 [2016-16729]

Download as PDF 46078 Federal Register / Vol. 81, No. 136 / Friday, July 15, 2016 / Notices to provide to the FCC advice, data, and technical analyses, and will formulate recommendations relating to the preparation of U.S. proposals and positions for ITU World Radiocommunication Conferences, specifically the World Radiocommunication Conference that has been preliminarily scheduled for the year 2019 (WRC–19). This notice advises interested persons of the first meeting of the WRCAC. Additional information regarding the WRC–19 and the WRCAC is available on the WRCAC’s Web site, https:// www.fcc.gov/wrc-19. The meeting is open to the public. Open captioning will be provided for this event. Other reasonable accommodations for people with disabilities are available upon request. Requests for such accommodations should be submitted via email to fcc504@fcc.gov or by calling the Consumer & Governmental Affairs Bureau at (202) 418–0530 (voice), (202) 418–0432 (TTY). Such requests should include a detailed description of the accommodation needed. In addition, please include a way for the FCC to contact the requester if more information is needed to fill the request. Please allow at least five days’ advance notice; last minute requests will be accepted, but may not be possible to accommodate. The proposed agenda for the first meeting is as follows: Agenda First Meeting of the World Radiocommunication Conference Advisory Committee Federal Communications Commission, 445 12th Street SW., Room TW–C305, Washington, DC 20554, August 2, 2016; 11:00 a.m. 1. Opening Remarks 2. Approval of Agenda 3. Advisory Committee Structure 4. WRC–19 Preparatory Process Timeline 5. Other Business sradovich on DSK3GMQ082PROD with NOTICES FEDERAL RESERVE SYSTEM Formations of, Acquisitions by, and Mergers of Bank Holding Companies The companies listed in this notice have applied to the Board for approval, The notificants listed below have applied under the Change in Bank Control Act (12 U.S.C. 1817(j)) and § 225.41 of the Board’s Regulation Y (12 CFR 225.41) to acquire shares of a bank or bank holding company. The factors that are considered in acting on the PO 00000 Frm 00035 Fmt 4703 notices are set forth in paragraph 7 of the Act (12 U.S.C. 1817(j)(7)). The notices are available for immediate inspection at the Federal Reserve Bank indicated. The notices also will be available for inspection at the offices of the Board of Governors. Interested persons may express their views in writing to the Reserve Bank indicated for that notice or to the offices of the Board of Governors. Comments must be received not later than August 1, 2016. A. Federal Reserve Bank of Minneapolis (Jacquelyn K. Brunmeier, Assistant Vice President) 90 Hennepin Avenue, Minneapolis, Minnesota 55480–0291: 1. Jeffrey A. Fisher, Bigfork, Minnesota; to retain 25 percent or more of the shares of Bigfork Bancshares, Inc., Bigfork, Minnesota, and thereby indirectly retain control of First State Bank of Bigfork, Bigfork, Minnesota. Board of Governors of the Federal Reserve System, July 11, 2016. Michele Taylor Fennell, Assistant Secretary of the Board. [FR Doc. 2016–16696 Filed 7–14–16; 8:45 am] BILLING CODE 6210–01–P FEDERAL TRADE COMMISSION [File No. 152 3034] Warner Bros. Home Entertainment Inc.; Analysis of Proposed Consent Order to Aid Public Comment Federal Trade Commission. Proposed Consent Agreement. AGENCY: ACTION: The consent agreement in this matter settles alleged violations of federal law prohibiting unfair or deceptive acts or practices. The attached Analysis to Aid Public Comment describes both the allegations in the draft complaint and the terms of the consent order—embodied in the consent agreement—that would settle these allegations. SUMMARY: Comments must be received on or before August 10, 2016. ADDRESSES: Interested parties may file a comment at https:// ftcpublic.commentworks.com/ftc/ warnerbrothersconsent online or on paper, by following the instructions in the Request for Comment part of the SUPPLEMENTARY INFORMATION section below. Write ‘‘In the Matter of Warner Bros. Home Entertainment Inc., File No. 152 3034—Consent Agreement’’ on your comment and file your comment online at https://ftcpublic.commentworks.com/ ftc/warnerbrothersconsent by following DATES: Change in Bank Control Notices; Acquisitions of Shares of a Bank or Bank Holding Company BILLING CODE 6712–01–P Jkt 238001 [FR Doc. 2016–16748 Filed 7–14–16; 8:45 am] FEDERAL RESERVE SYSTEM [FR Doc. 2016–16716 Filed 7–14–16; 8:45 am] 19:03 Jul 14, 2016 Board of Governors of the Federal Reserve System, July 12, 2016. Michele Taylor Fennell, Assistant Secretary of the Board. BILLING CODE 6210–01–P Federal Communications Commission. Denise Coca, Chief, Telecommunications and Analysis Division, International Bureau. VerDate Sep<11>2014 pursuant to the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) (BHC Act), Regulation Y (12 CFR part 225), and all other applicable statutes and regulations to become a bank holding company and/or to acquire the assets or the ownership of, control of, or the power to vote shares of a bank or bank holding company and all of the banks and nonbanking companies owned by the bank holding company, including the companies listed below. The applications listed below, as well as other related filings required by the Board, are available for immediate inspection at the Federal Reserve Bank indicated. The applications will also be available for inspection at the offices of the Board of Governors. Interested persons may express their views in writing on the standards enumerated in the BHC Act (12 U.S.C. 1842(c)). If the proposal also involves the acquisition of a nonbanking company, the review also includes whether the acquisition of the nonbanking company complies with the standards in section 4 of the BHC Act (12 U.S.C. 1843). Unless otherwise noted, nonbanking activities will be conducted throughout the United States. Unless otherwise noted, comments regarding each of these applications must be received at the Reserve Bank indicated or the offices of the Board of Governors not later than August 12, 2016. A. Federal Reserve Bank of New York (Ivan Hurwitz, Vice President) 33 Liberty Street, New York, New York 10045–0001. Comments can also be sent electronically to Comments.applications@ny.frb.org: 1. CheckSpring Community Corporation NY, Bronx, New York; to become a bank holding company by acquiring 100 percent of the shares of Spring Bank, Bronx, New York. Sfmt 4703 E:\FR\FM\15JYN1.SGM 15JYN1 sradovich on DSK3GMQ082PROD with NOTICES Federal Register / Vol. 81, No. 136 / Friday, July 15, 2016 / Notices the instructions on the web-based form. If you prefer to file your comment on paper, write ‘‘In the Matter of Warner Bros. Home Entertainment Inc., File No. 152 3034—Consent Agreement’’ on your comment and on the envelope, and mail your comment to the following address: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW., Suite CC–5610 (Annex D), Washington, DC 20580, or deliver your comment to the following address: Federal Trade Commission, Office of the Secretary, Constitution Center, 400 7th Street SW., 5th Floor, Suite 5610 (Annex D), Washington, DC 20024. FOR FURTHER INFORMATION CONTACT: Linda K. Badger, (415–848–5151), FTC Western Region, 901 Market Street, Suite 570, San Francisco, CA 94103. SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal Trade Commission Act, 15 U.S.C. 46(f), and FTC Rule 2.34, 16 CFR 2.34, notice is hereby given that the above-captioned consent agreement containing consent order to cease and desist, having been filed with and accepted, subject to final approval, by the Commission, has been placed on the public record for a period of thirty (30) days. The following Analysis to Aid Public Comment describes the terms of the consent agreement, and the allegations in the complaint. An electronic copy of the full text of the consent agreement package can be obtained from the FTC Home Page (for July 11, 2016), on the World Wide Web at: http://www.ftc.gov/ os/actions.shtm. You can file a comment online or on paper. For the Commission to consider your comment, we must receive it on or before August 10, 2016. Write ‘‘In the Matter of Warner Bros. Home Entertainment Inc., File No. 152 3034— Consent Agreement’’ on your comment. Your comment—including your name and your state—will be placed on the public record of this proceeding, including, to the extent practicable, on the public Commission Web site, at http://www.ftc.gov/os/ publiccomments.shtm. As a matter of discretion, the Commission tries to remove individuals’ home contact information from comments before placing them on the Commission Web site. Because your comment will be made public, you are solely responsible for making sure that your comment does not include any sensitive personal information, like anyone’s Social Security number, date of birth, driver’s license number or other state identification number or foreign country equivalent, passport number, financial VerDate Sep<11>2014 19:03 Jul 14, 2016 Jkt 238001 account number, or credit or debit card number. You are also solely responsible for making sure that your comment does not include any sensitive health information, like medical records or other individually identifiable health information. In addition, do not include any ‘‘[t]rade secret or any commercial or financial information which . . . is privileged or confidential,’’ as discussed in Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2). In particular, do not include competitively sensitive information such as costs, sales statistics, inventories, formulas, patterns, devices, manufacturing processes, or customer names. If you want the Commission to give your comment confidential treatment, you must file it in paper form, with a request for confidential treatment, and you have to follow the procedure explained in FTC Rule 4.9(c), 16 CFR 4.9(c).1 Your comment will be kept confidential only if the FTC General Counsel, in his or her sole discretion, grants your request in accordance with the law and the public interest. Postal mail addressed to the Commission is subject to delay due to heightened security screening. As a result, we encourage you to submit your comments online. To make sure that the Commission considers your online comment, you must file it at https:// ftcpublic.commentworks.com/ftc/ warnerbrothersconsent by following the instructions on the web-based form. If this Notice appears at http://www. regulations.gov/#!home, you also may file a comment through that Web site. If you file your comment on paper, write ‘‘In the Matter of Warner Bros. Home Entertainment Inc., File No. 152 3034—Consent Agreement’’ on your comment and on the envelope, and mail your comment to the following address: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW., Suite CC–5610 (Annex D), Washington, DC 20580, or deliver your comment to the following address: Federal Trade Commission, Office of the Secretary, Constitution Center, 400 7th Street SW., 5th Floor, Suite 5610 (Annex D), Washington, DC 20024. If possible, submit your paper comment to the Commission by courier or overnight service. Visit the Commission Web site at http://www.ftc.gov to read this Notice and the news release describing it. The 1 In particular, the written request for confidential treatment that accompanies the comment must include the factual and legal basis for the request, and must identify the specific portions of the comment to be withheld from the public record. See FTC Rule 4.9(c), 16 CFR 4.9(c). PO 00000 Frm 00036 Fmt 4703 Sfmt 4703 46079 FTC Act and other laws that the Commission administers permit the collection of public comments to consider and use in this proceeding as appropriate. The Commission will consider all timely and responsive public comments that it receives on or before August 10, 2016. You can find more information, including routine uses permitted by the Privacy Act, in the Commission’s privacy policy, at http://www.ftc.gov/ftc/privacy.htm. Analysis of Proposed Consent Order To Aid Public Comment The Federal Trade Commission (‘‘FTC’’ or ‘‘Commission’’) has accepted, subject to final approval, an agreement containing consent order from Warner Bros. Home Entertainment Inc. (‘‘Warner Bros.’’ or ‘‘respondent’’). The proposed consent order (‘‘proposed order’’) has been placed on the public record for thirty (30) days for receipt of comments by interested persons. Comments received during this period will become part of the public record. After thirty (30) days, the Commission will again review the agreement and the comments received, and will decide whether it should withdraw from the agreement and take appropriate action or make final the agreement’s proposed order. This matter involves respondent’s use of social media influencers to advertise the video game, Middle Earth: Shadow of Mordor (‘‘Shadow of Mordor’’). According to the Commission’s complaint, Warner Bros., through its ad agency, Plaid Social Labs, LLC, hired individuals who had earned reputations as video game enthusiasts on YouTube (‘‘YouTube influencers’’) to post positive videos promoting Shadow of Mordor on YouTube. The Commission’s complaint alleges that these YouTube influencers were given free access to a pre-release version of Shadow of Mordor and cash payments often ranging from hundreds of dollars to tens of thousands of dollars, if the videos they created about Shadow of Mordor met certain requirements defined by Warner Bros. Among other things, Warner Bros. required influencer videos to promote a positive sentiment about the game, and not to disclose any bugs or glitches that the game might have. Consequently, these videos were sponsored advertisements, and did not necessarily reflect the independent experiences of the individual YouTube influencers. The complaint also alleges that while Warner Bros. instructed the YouTube influencers to provide a disclosure that their videos had been sponsored, it specified that the disclosure be written, and placed in the description box E:\FR\FM\15JYN1.SGM 15JYN1 sradovich on DSK3GMQ082PROD with NOTICES 46080 Federal Register / Vol. 81, No. 136 / Friday, July 15, 2016 / Notices appearing below the YouTube videos. Warner Bros. did not require the YouTube influencers to place a sponsorship disclosure clearly and conspicuously in the video itself. Nor did Warner Bros. require that the YouTube influencers be instructed to place the sponsorship disclosure ‘‘above the fold’’ in the description box, or visible without consumers having to scroll down or click on a link, as it had for other promotional information about Shadow of Mordor. (See, e.g., Exhibit A– 1) As a result, most YouTube influencers did not include any sponsorship disclosures in their videos, and only placed their sponsorship disclosures ‘‘below the fold’’ in the description box below the video. Therefore, consumers had to click on a ‘‘Show More’’ button in the description box and potentially scroll down before they could see the sponsorship disclosure. As a result, consumers who watched these YouTube videos were unlikely to learn that the videos were paid promotions for Warner Bros. The Commission’s complaint further alleges that when YouTube influencers posted their Shadow of Mordor videos for viewing on Facebook or Twitter, consumers were even less likely to see these sponsorship disclosures because such posts did not include the ‘‘Show More’’ button. In addition, the complaint states that on at least two occasions, the influencers disclosed only that they had been given early access to the game, and did not adequately disclose that they had also been paid to post the video. According to the complaint, in numerous instances, YouTube influencers did not disclose or adequately disclose that Warner Bros., through Plaid Social, offered compensation to the influencers in exchange for creating and uploading gameplay videos as part of a Shadow of Mordor advertising campaign. The Commission’s complaint alleges that these videos were false and misleading because they did not reflect the independent opinions or experiences of impartial video game enthusiasts. The complaint further alleges that the videos were deceptive because they failed to disclose or disclose adequately that the influencers who posted the videos were compensated in connection with their endorsements. The proposed order includes injunctive relief to address these alleged violations and requires Warner Bros. to follow certain monitoring and compliance procedures related to its use of influencer campaigns. Part I of the proposed order prohibits Warner Bros., in connection with the VerDate Sep<11>2014 19:03 Jul 14, 2016 Jkt 238001 advertising of any home entertainment product or service, from misrepresenting in any influencer campaign that an influencer or endorser of such product or service is an independent user or ordinary consumer of the product or service. Part II of the proposed order requires Warner Bros., in connection with the advertising of any home entertainment product or service by means of an endorsement, in any influencer campaign, to disclose clearly and conspicuously a material connection, if one exists, between the influencer or endorser and Warner Bros. Part III of the proposed order sets out certain monitoring and compliance obligations to ensure that Warner Bros., or any entity it engages to conduct an influencer campaign, comply with Parts I and II of the proposed order. These obligations include: Obtaining signed acknowledgements from such influencers that they will disclose their material connection to Warner Bros.; monitoring the influencers’ representations and disclosures; maintaining records of monitoring efforts; and, under certain circumstances, terminating and ceasing payment to influencers who misrepresent their independence, or fail to properly disclose any material connection to Warner Bros. Part III specifically provides that if Warner Bros. engages an entity to conduct an influencer campaign, Warner Bros. must take steps to ensure that the entity complies with this Part, and to monitor its compliance. If the entity fails to comply with this Part, Warner Bros. must cease payment to the entity until it cures any noncompliance. Furthermore, Warner Bros. is required to disqualify the entity from conducting future influencer campaigns upon a repeat incident, unless it reasonably concludes that the entity’s failure to comply was inadvertent. Part IV of the proposed order contains recordkeeping requirements for relevant documents. Parts V through VII of the proposed order require the company to: Provide copies of the order to certain personnel having responsibilities with respect to the subject matter of the order; notify the Commission of changes in corporate structure that might affect compliance obligations under the order; and file compliance reports with the Commission. Part VIII of the proposed order provides that the order will terminate after twenty (20) years, with certain exceptions. The purpose of this analysis is to facilitate public comment on the PO 00000 Frm 00037 Fmt 4703 Sfmt 4703 proposed order, and it is not intended to constitute an official interpretation of the complaint or proposed order, or to modify the proposed order’s terms in any way. By direction of the Commission. Donald S. Clark, Secretary. [FR Doc. 2016–16729 Filed 7–14–16; 8:45 am] BILLING CODE 6750–01–P DEPARTMENT OF HEALTH AND HUMAN SERVICES Centers for Medicare & Medicaid Services [Document Identifiers: CMS–339 and CMS– 460] Agency Information Collection Activities: Proposed Collection; Comment Request Centers for Medicare & Medicaid Services, HHS. ACTION: Notice. AGENCY: The Centers for Medicare & Medicaid Services (CMS) is announcing an opportunity for the public to comment on CMS’ intention to collect information from the public. Under the Paperwork Reduction Act of 1995 (the PRA), federal agencies are required to publish notice in the Federal Register concerning each proposed collection of information (including each proposed extension or reinstatement of an existing collection of information) and to allow 60 days for public comment on the proposed action. Interested persons are invited to send comments regarding our burden estimates or any other aspect of this collection of information, including any of the following subjects: (1) The necessity and utility of the proposed information collection for the proper performance of the agency’s functions; (2) the accuracy of the estimated burden; (3) ways to enhance the quality, utility, and clarity of the information to be collected; and (4) the use of automated collection techniques or other forms of information technology to minimize the information collection burden. DATES: Comments must be received by September 13, 2016. ADDRESSES: When commenting, please reference the document identifier or OMB control number. To be assured consideration, comments and recommendations must be submitted in any one of the following ways: 1. Electronically. You may send your comments electronically to http:// www.regulations.gov. Follow the SUMMARY: E:\FR\FM\15JYN1.SGM 15JYN1

Agencies

[Federal Register Volume 81, Number 136 (Friday, July 15, 2016)]
[Notices]
[Pages 46078-46080]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-16729]


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FEDERAL TRADE COMMISSION

[File No. 152 3034]


Warner Bros. Home Entertainment Inc.; Analysis of Proposed 
Consent Order to Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed Consent Agreement.

-----------------------------------------------------------------------

SUMMARY: The consent agreement in this matter settles alleged 
violations of federal law prohibiting unfair or deceptive acts or 
practices. The attached Analysis to Aid Public Comment describes both 
the allegations in the draft complaint and the terms of the consent 
order--embodied in the consent agreement--that would settle these 
allegations.

DATES: Comments must be received on or before August 10, 2016.

ADDRESSES: Interested parties may file a comment at https://ftcpublic.commentworks.com/ftc/warnerbrothersconsent online or on 
paper, by following the instructions in the Request for Comment part of 
the SUPPLEMENTARY INFORMATION section below. Write ``In the Matter of 
Warner Bros. Home Entertainment Inc., File No. 152 3034--Consent 
Agreement'' on your comment and file your comment online at https://ftcpublic.commentworks.com/ftc/warnerbrothersconsent by following

[[Page 46079]]

the instructions on the web-based form. If you prefer to file your 
comment on paper, write ``In the Matter of Warner Bros. Home 
Entertainment Inc., File No. 152 3034--Consent Agreement'' on your 
comment and on the envelope, and mail your comment to the following 
address: Federal Trade Commission, Office of the Secretary, 600 
Pennsylvania Avenue NW., Suite CC-5610 (Annex D), Washington, DC 20580, 
or deliver your comment to the following address: Federal Trade 
Commission, Office of the Secretary, Constitution Center, 400 7th 
Street SW., 5th Floor, Suite 5610 (Annex D), Washington, DC 20024.

FOR FURTHER INFORMATION CONTACT: Linda K. Badger, (415-848-5151), FTC 
Western Region, 901 Market Street, Suite 570, San Francisco, CA 94103.

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal 
Trade Commission Act, 15 U.S.C. 46(f), and FTC Rule 2.34, 16 CFR 2.34, 
notice is hereby given that the above-captioned consent agreement 
containing consent order to cease and desist, having been filed with 
and accepted, subject to final approval, by the Commission, has been 
placed on the public record for a period of thirty (30) days. The 
following Analysis to Aid Public Comment describes the terms of the 
consent agreement, and the allegations in the complaint. An electronic 
copy of the full text of the consent agreement package can be obtained 
from the FTC Home Page (for July 11, 2016), on the World Wide Web at: 
http://www.ftc.gov/os/actions.shtm.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before August 10, 2016. 
Write ``In the Matter of Warner Bros. Home Entertainment Inc., File No. 
152 3034--Consent Agreement'' on your comment. Your comment--including 
your name and your state--will be placed on the public record of this 
proceeding, including, to the extent practicable, on the public 
Commission Web site, at http://www.ftc.gov/os/publiccomments.shtm. As a 
matter of discretion, the Commission tries to remove individuals' home 
contact information from comments before placing them on the Commission 
Web site.
    Because your comment will be made public, you are solely 
responsible for making sure that your comment does not include any 
sensitive personal information, like anyone's Social Security number, 
date of birth, driver's license number or other state identification 
number or foreign country equivalent, passport number, financial 
account number, or credit or debit card number. You are also solely 
responsible for making sure that your comment does not include any 
sensitive health information, like medical records or other 
individually identifiable health information. In addition, do not 
include any ``[t]rade secret or any commercial or financial information 
which . . . is privileged or confidential,'' as discussed in Section 
6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR 
4.10(a)(2). In particular, do not include competitively sensitive 
information such as costs, sales statistics, inventories, formulas, 
patterns, devices, manufacturing processes, or customer names.
    If you want the Commission to give your comment confidential 
treatment, you must file it in paper form, with a request for 
confidential treatment, and you have to follow the procedure explained 
in FTC Rule 4.9(c), 16 CFR 4.9(c).\1\ Your comment will be kept 
confidential only if the FTC General Counsel, in his or her sole 
discretion, grants your request in accordance with the law and the 
public interest.
---------------------------------------------------------------------------

    \1\ In particular, the written request for confidential 
treatment that accompanies the comment must include the factual and 
legal basis for the request, and must identify the specific portions 
of the comment to be withheld from the public record. See FTC Rule 
4.9(c), 16 CFR 4.9(c).
---------------------------------------------------------------------------

    Postal mail addressed to the Commission is subject to delay due to 
heightened security screening. As a result, we encourage you to submit 
your comments online. To make sure that the Commission considers your 
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/warnerbrothersconsent by following the instructions on the web-
based form. If this Notice appears at http://www.regulations.gov/#!home, you also may file a comment through that Web site.
    If you file your comment on paper, write ``In the Matter of Warner 
Bros. Home Entertainment Inc., File No. 152 3034--Consent Agreement'' 
on your comment and on the envelope, and mail your comment to the 
following address: Federal Trade Commission, Office of the Secretary, 
600 Pennsylvania Avenue NW., Suite CC-5610 (Annex D), Washington, DC 
20580, or deliver your comment to the following address: Federal Trade 
Commission, Office of the Secretary, Constitution Center, 400 7th 
Street SW., 5th Floor, Suite 5610 (Annex D), Washington, DC 20024. If 
possible, submit your paper comment to the Commission by courier or 
overnight service.
    Visit the Commission Web site at http://www.ftc.gov to read this 
Notice and the news release describing it. The FTC Act and other laws 
that the Commission administers permit the collection of public 
comments to consider and use in this proceeding as appropriate. The 
Commission will consider all timely and responsive public comments that 
it receives on or before August 10, 2016. You can find more 
information, including routine uses permitted by the Privacy Act, in 
the Commission's privacy policy, at http://www.ftc.gov/ftc/privacy.htm.

Analysis of Proposed Consent Order To Aid Public Comment

    The Federal Trade Commission (``FTC'' or ``Commission'') has 
accepted, subject to final approval, an agreement containing consent 
order from Warner Bros. Home Entertainment Inc. (``Warner Bros.'' or 
``respondent''). The proposed consent order (``proposed order'') has 
been placed on the public record for thirty (30) days for receipt of 
comments by interested persons. Comments received during this period 
will become part of the public record. After thirty (30) days, the 
Commission will again review the agreement and the comments received, 
and will decide whether it should withdraw from the agreement and take 
appropriate action or make final the agreement's proposed order.
    This matter involves respondent's use of social media influencers 
to advertise the video game, Middle Earth: Shadow of Mordor (``Shadow 
of Mordor''). According to the Commission's complaint, Warner Bros., 
through its ad agency, Plaid Social Labs, LLC, hired individuals who 
had earned reputations as video game enthusiasts on YouTube (``YouTube 
influencers'') to post positive videos promoting Shadow of Mordor on 
YouTube. The Commission's complaint alleges that these YouTube 
influencers were given free access to a pre-release version of Shadow 
of Mordor and cash payments often ranging from hundreds of dollars to 
tens of thousands of dollars, if the videos they created about Shadow 
of Mordor met certain requirements defined by Warner Bros. Among other 
things, Warner Bros. required influencer videos to promote a positive 
sentiment about the game, and not to disclose any bugs or glitches that 
the game might have. Consequently, these videos were sponsored 
advertisements, and did not necessarily reflect the independent 
experiences of the individual YouTube influencers.
    The complaint also alleges that while Warner Bros. instructed the 
YouTube influencers to provide a disclosure that their videos had been 
sponsored, it specified that the disclosure be written, and placed in 
the description box

[[Page 46080]]

appearing below the YouTube videos. Warner Bros. did not require the 
YouTube influencers to place a sponsorship disclosure clearly and 
conspicuously in the video itself. Nor did Warner Bros. require that 
the YouTube influencers be instructed to place the sponsorship 
disclosure ``above the fold'' in the description box, or visible 
without consumers having to scroll down or click on a link, as it had 
for other promotional information about Shadow of Mordor. (See, e.g., 
Exhibit A-1) As a result, most YouTube influencers did not include any 
sponsorship disclosures in their videos, and only placed their 
sponsorship disclosures ``below the fold'' in the description box below 
the video. Therefore, consumers had to click on a ``Show More'' button 
in the description box and potentially scroll down before they could 
see the sponsorship disclosure. As a result, consumers who watched 
these YouTube videos were unlikely to learn that the videos were paid 
promotions for Warner Bros.
    The Commission's complaint further alleges that when YouTube 
influencers posted their Shadow of Mordor videos for viewing on 
Facebook or Twitter, consumers were even less likely to see these 
sponsorship disclosures because such posts did not include the ``Show 
More'' button. In addition, the complaint states that on at least two 
occasions, the influencers disclosed only that they had been given 
early access to the game, and did not adequately disclose that they had 
also been paid to post the video.
    According to the complaint, in numerous instances, YouTube 
influencers did not disclose or adequately disclose that Warner Bros., 
through Plaid Social, offered compensation to the influencers in 
exchange for creating and uploading gameplay videos as part of a Shadow 
of Mordor advertising campaign. The Commission's complaint alleges that 
these videos were false and misleading because they did not reflect the 
independent opinions or experiences of impartial video game 
enthusiasts. The complaint further alleges that the videos were 
deceptive because they failed to disclose or disclose adequately that 
the influencers who posted the videos were compensated in connection 
with their endorsements.
    The proposed order includes injunctive relief to address these 
alleged violations and requires Warner Bros. to follow certain 
monitoring and compliance procedures related to its use of influencer 
campaigns.
    Part I of the proposed order prohibits Warner Bros., in connection 
with the advertising of any home entertainment product or service, from 
misrepresenting in any influencer campaign that an influencer or 
endorser of such product or service is an independent user or ordinary 
consumer of the product or service.
    Part II of the proposed order requires Warner Bros., in connection 
with the advertising of any home entertainment product or service by 
means of an endorsement, in any influencer campaign, to disclose 
clearly and conspicuously a material connection, if one exists, between 
the influencer or endorser and Warner Bros.
    Part III of the proposed order sets out certain monitoring and 
compliance obligations to ensure that Warner Bros., or any entity it 
engages to conduct an influencer campaign, comply with Parts I and II 
of the proposed order. These obligations include: Obtaining signed 
acknowledgements from such influencers that they will disclose their 
material connection to Warner Bros.; monitoring the influencers' 
representations and disclosures; maintaining records of monitoring 
efforts; and, under certain circumstances, terminating and ceasing 
payment to influencers who misrepresent their independence, or fail to 
properly disclose any material connection to Warner Bros. Part III 
specifically provides that if Warner Bros. engages an entity to conduct 
an influencer campaign, Warner Bros. must take steps to ensure that the 
entity complies with this Part, and to monitor its compliance. If the 
entity fails to comply with this Part, Warner Bros. must cease payment 
to the entity until it cures any noncompliance. Furthermore, Warner 
Bros. is required to disqualify the entity from conducting future 
influencer campaigns upon a repeat incident, unless it reasonably 
concludes that the entity's failure to comply was inadvertent.
    Part IV of the proposed order contains recordkeeping requirements 
for relevant documents.
    Parts V through VII of the proposed order require the company to: 
Provide copies of the order to certain personnel having 
responsibilities with respect to the subject matter of the order; 
notify the Commission of changes in corporate structure that might 
affect compliance obligations under the order; and file compliance 
reports with the Commission.
    Part VIII of the proposed order provides that the order will 
terminate after twenty (20) years, with certain exceptions.
    The purpose of this analysis is to facilitate public comment on the 
proposed order, and it is not intended to constitute an official 
interpretation of the complaint or proposed order, or to modify the 
proposed order's terms in any way.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2016-16729 Filed 7-14-16; 8:45 am]
 BILLING CODE 6750-01-P