Home Gaming CSGO Lotto have finally settled their charges with the Federal Trade Commission

CSGO Lotto have finally settled their charges with the Federal Trade Commission

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Last year we offered extensive coverage of the ongoing drama which involved a number of CS:GO skin gambling sites. Eventually, they all got taken down, but that didn’t stop certain arms of the law from making sure these perpetrators faced due justice. CSGO Lotto, a company owned by Trevor “TmarTn” Martin and Tom “ProSyndicate” Cassel was easily one of the biggest stories at the time and led to a lot of drama unfolding regarding the gambling saga.

lotto

The two owners have finally settled all charges with the Federal Trade Commission (FTC) in the United States in a “first of its kind” order targeting “social media influencers” and the shady stuff they’ve been pulling for years. The new order (not named Order 66unfortunatelyy) is aimed at social media personalities who use their following to promote their businesses, as TmarTn and ProSyndicate did with their CSGO Lotto website which they benefitted from financially. (via TEO)

“The Commission order settling the charges requires Martin and Cassell to clearly and conspicuously disclose any material connections with an endorser or between an endorser and any promoted product or service,” states the FTC order. “Also today, the FTC announced that staff has both sent warning letters to 21 social media influencers it contacted earlier this year regarding their Instagram posts, and updated staff guidance for social media influencers and endorsers.”

What this means is that any social influencer promoting a business need to disclose their connections with the services. Whether it’s their own company, or someone else’s, they need to make it clear. This applies to getting other people to help promote their business too. It all needs to be transparent and disclosed properly or they could face a civil penalty. These are applied in new changes to the FTC’s endorsement guidelines, with the specific addition of social media and promotions within social media posts.

“The new information covers a range of topics, including tags in pictures, Instagram disclosures, Snapchat disclosures, obligations of foreign influencers, disclosure of free travel, whether a disclosure must be at the beginning of a post, and the adequacy of various disclosures like ‘#ambassador.’”

Many expected a much higher penalty for both Martin and Cassell, but because no guidelines existed prior to the case they couldn’t face the full force of the law and thus walked away with a slight slap on the wrists. It’s unfortunate, because they essentially misled their fans, but at the end of the day we now have a clear ruling on these “social media celebrities” who have used their massive fanbase to promote and sell their own products and businesses in the past.

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Last Updated: September 12, 2017

11 Comments

  1. Raptor Rants

    September 12, 2017 at 13:15

    So each time any event happens where the event asks for certain hashtags to be used, “influencers” such as game reviewers etc from know sites have to add in a hashtag disclaimer like #promotional or #Event or something like that? If I read this all correctly

    Reply

  2. Kikmi

    September 12, 2017 at 13:32

  3. Kromas Ryder

    September 12, 2017 at 13:33

    Youtubers getting away with stuff. Oh well. I suppose if you have enough fans you are untouchable these days.

    Reply

    • Raptor Rants

      September 12, 2017 at 13:35

      aaaah but this is all a start. Digital law is still pretty much in its infancy considering how long the tech has been around.

      Things like this are stepping stones. These types of laws will start applying to all levels of digital media.

      There is definitely caution that must be had. I mean one must not stifle freedom, but having good foundations starting to be set is a good start.

      Reply

      • Kromas Ryder

        September 12, 2017 at 13:38

        I really hope so because youtube is getting unbearable these days.

        Reply

        • Raptor Rants

          September 12, 2017 at 13:44

          Yeah, people take freedom of speech a little too far there lately. Everyone thinks they are free to say what they want with no worries of repercussions.

          But what gets to me is the ones who are racist, and plainly just a-holes get a free pass.

          But let someone who has never had a scandal, is generally a outstanding guy/gal say 1 thing that could just maybe possibly be read in a different way then all heck breaks loose

          Reply

  4. Craig "CrAiGiSh" Dodd

    September 12, 2017 at 14:59

    New TV show – “How to YouTube and get away with EVERYTHING”

    Reply

  5. Phaezen

    September 12, 2017 at 15:41

    Less of a slap on the wrists than it initially appears https://www.youtube.com/watch?v=h_TIBmPBuWc

    Reply

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