I just recently finished making a video talking about an advertisement by Sky Williams for lootcrate, and how there's potentially a violation of FTC guidelines in one of his videos being misleading and people not getting the items they wanted.
I'd like your thoughts on it. Here's the video and here's the outline https://www.youtube.com/watch?v=A03aWQWV08E
and the video that might be in violation of ftc guidelines here https://www.youtube.com/watch?v=6Dnqz7eBLyE
tl;dr skywilliams shows dx crate, however the only way you would know it, is if you saw the 16 frames in the video that showed the box, and so I and others didn't get the items we wanted. And other things in the video could lead viewers to believe that the base crate which doesn't include anything shown includes the items shown in the video.
Hey everyone Full disclosure, I have no relationship with sky williams or lootcrate other than that I paid lootcrate and sky williams via using his sponsor link and I might have a chip on my shoulder as I won't be getting what I thought when I ordered my first lootcrate.
Before we get into this video, I enjoy sky williams content, and he seems like a genuine person and a big sweetheart. And I have no ill will towards him or lootcrate. I'd even play ranked with him
Also, generally it's the company trying to advertise that gets in trouble, not the content creator, as it's the burden of the company advertising to make sure their advertisers are following ftc guidelines.
Now, did sky williams and lootcrate violate FTC guidelines for online advertisements? I think maybe. I'm not a lawyer but here's my case.
The FTC has a nice short and sweet guideline for advertisements. It reads as follows from their website
"Under the law, claims in advertisements must be truthful, cannot be deceptive or unfair, and must be evidence-based. For some specialized products or services, additional rules may apply."
And also from the FTC
What is the legal basis for the Guides? https://www.ftc.gov/tips-advice/business-center/guidance/ftcs-endorsement-guides-what-people-are-asking#how
If an endorser is acting on behalf of an advertiser, what she or he is saying is usually going to be commercial speech – and commercial speech violates the FTC Act if it’s deceptive. The FTC conducts investigations and brings cases involving endorsements under Section 5 of the FTC Act, which generally prohibits deceptive advertising.
Item one, unfair and or deceptive.
What items are shown in the video?
The Suicide squad belt and Deadpool Aviator sunglasses.
Now why is this unfair or deceptive? Well thing is, this isn't included in the base monthly lootcrate, and unless you have a keen eye and a knowledge of lootcrate, it's easy to think that the items shown are part of the base monthly lootcrate. As nowhere in the video or description is it mentioned that this is the DX crate. And the only way you would know is if you paid attention and saw the "DX" in the half second that Sky Williams holds the box.
It cannot be expected that any regular joe will know that the crate Sky Williams opening is a DX crate, and thus, lootcrate and sky williams will make money on something that people will never receive, as I bought my first lootcrate for the suicide squad belt and aviators, as I loved the suicide squad movie and I need new aviators.
Not only that, but the other mentions in the video of the lootcrate sponsorship don't include the fact that it is the DX crate, and includes text that would make viewers believe the speed crate, which is the base crate, includes the items shown. For example.
"For 10% off to get a belt fit for a real daddy"
And at the end "the theme of this months lootcrate is: SPEED" again, no mention of this being a DX crate.
So let me ask you, is this unfair or deceptive? If you knew nothing about the lootcrates would you know that what is shown isn't included in the base lootcrate?
I'll repeat myself, I think Sky Williams is a great content creator and he seems like a genuine person. And lootcrate seems okay. Although lets continue
Disclosure of the fact that you are being compensated
Now is Sky Williams being compensated? Well, if you watch his video, there's a slight mention of this (Marina Joyce bit)
However that's not exactly clear.
From the FTC website
Are you saying that I need to list the details of everything I get from a company for reviewing a product? No. As long as your audience knows the nature of your relationship, it’s good enough. So whether you got $50 or $1,000 you could simply say you were “paid.” (That wouldn’t be good enough, however, if you’re an employee or co-owner.)
And we know from other youtubers that this is a paid thing, for example
Boogie (In his videos says he gets compensated if you use his link)
Take note also that boogie includes in the description and in the video in plain language that if you use his link, he'll get compensated, and Sky Williams doesn’t include that in his video nor in his description.
Totalbiscuit (reading from ftc, that if you're paid, you should disclose you are paid"
Now that's basically my thought process here.