YouTubers Who Betrayed Their Viewers... Seven Out of Ten Are Doing Undisclosed Ads

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Series of apology letters including 'Jjuyang' retirement

"The reality of YouTuber advertising is grim"
Fair Trade Commission announces crackdown starting next month

YouTube logo (Photo by Asia Economy DB)

[Asia Economy Reporter Yoo Byung-don] Recently, a controversy has arisen as the reality of covert advertising among famous mukbang YouTubers has come to light following a revelation by a YouTuber. When it was revealed that these YouTubers posted advertising videos without disclosing them as ads, criticism against them continued.

According to industry insiders on the 7th, covert advertising refers to receiving payment such as advertising fees from companies but hiding the fact that it is an advertisement from viewers. To indicate an advertisement on YouTube, creators can mark "This video contains paid promotion such as indirect or endorsement advertising" when uploading their videos.

However, many mukbang YouTubers either do not disclose the advertisement in the video or display it in small print in the 'More' section, making it difficult to recognize whether it is an ad. Unlike regular advertisements, covert ads can be accepted infinitely and are known to be preferred by companies due to their effectiveness.

Popular YouTubers such as YangPang, Mbro, Hamji, Papuri, and Nareum, who were caught for covert advertising, have posted apologies and entered a period of self-reflection. In particular, mukbang YouTuber 'Jjuyang', who has 2.67 million subscribers, even announced an abrupt retirement. YouTuber 'AejuGaTVChamPD', who exposed the covert advertising practice, explained, "Among YouTubers receiving high-priced ads, it is almost safe to say that hardly any openly disclosed the ads they were offered, showing how dire the reality of advertising among YouTubers truly is."

Covert advertising is spreading indiscriminately across all fields. It has long become a common practice not only among mukbang YouTubers but also across IT, beauty, and other sectors. In fact, last year, the Korea Consumer Agency analyzed 582 advertising posts from 60 top influencer accounts and found that 408 did not disclose that they were advertisements. That means 7 out of 10 were covert ads.

However, even if YouTubers do not disclose or hide the fact that their content is advertising, there are currently no means to sanction them. Under the Act on Labeling and Advertising, covert advertising is considered deceptive advertising by concealing or minimizing facts, but sanctions are limited to advertisers, so YouTubers cannot be punished.

Nonetheless, the situation is expected to improve gradually as the Fair Trade Commission announced it will crack down on undisclosed ads starting in September. The FTC’s revised "Guidelines on Labeling and Advertising Regarding Recommendations and Endorsements," to be implemented next month, include a requirement that "YouTubers and others must clearly state when they post reviews in exchange for monetary compensation." The disclosure of "received compensation" must be placed where consumers can easily find it, and it should not be hidden behind comments or the 'More' section as is currently done. Additionally, using text that is too small or colors similar to the background to make the disclosure hard to see will also be prohibited.