The Federal Trade Commission has reached a proposed settlement with massive YouTube gaming network Machinima over a "false and misleading" promotion that paid video creators to talk about the Xbox One following its launch.

As we reported back in early 2014 , Machinima's promotion offered video makers additional view-based payments for videos that included Xbox One footage. Those videos were prohibited from "say[ing] anything negative or disparaging about Machinima, Xbox One, or any of its Games," and video makers were prohibited from discussing the particulars of the deal publicly. That means they couldn't disclose the paid promotion as required by FTC guidelines

In a fuller complaint against Machinima, the FTC noted that Machinima's agreement with Microsoft "promised that the influencer videos would 'not portray [Microsoft], the Xbox One, or the Launch Titles in a negative manner,' and Microsoft could request that Respondent take down any video that violated this promise." Most of the videos created under this program did not disclose that they were part of a Microsoft/Machinima promotion, according to the FTC, and instead implied that they "reflected the independent opinions of impartial video game enthusiasts."

"In truth and in fact, the video reviews for Xbox One and the Launch Titles did not reflect the independent opinions of impartial video game enthusiasts," the complaint continues. "Respondent’s influencers created the video reviews as part of the global advertising campaign to promote sales of

Xbox One and the Launch Titles... This fact would be material to consumers in their purchasing decisions regarding Xbox One and the Launch Titles."

"The failure to disclose this fact, in light of the representations made, was, and is, a deceptive practice," the complaint says.

In addition to the previously reported video campaign that was offered across Machinima's network of creators, Machinima also paid five specific "influencers" tidy sums to create two videos that included "two to three talking points detailing what features you’re looking forward to in the Xbox One" and launch title Ryse, according to the FTC complaint.

Through that portion of the promotion, one influential YouTuber got $15,000 for making two videos, while another got $30,000, the FTC notes. Despite this, the videos "appear to be independently produced and give the impression that they reflect [the creators'] personal views," according to the FTC. "Nowhere in the videos or in the videos’ descriptions did [they] disclose that [Machinima] paid [them] to create and upload them [through a Microsoft advertising program]."

As part of the proposed settlement, Machinima has agreed to "prominently disclose any material connection between the endorser and the advertiser" in future ad campaigns and refuse payment to video makers who don't include such disclosure. "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,” Director of the Bureau of Consumer Protection Jessica Rich said in a statement. "That’s true whether the endorsement appears in a video or any other media."

The FTC says it has dropped a concurrent investigation into Microsoft and promotional middleman company Starcom in the matter. Both companies already have "policies and procedures designed to prevent such lapses" and "have committed to, among other steps, specifically requiring their employees to monitor influencer campaigns conducted by subcontractors in the future," the FTC said.