Question
1. Jackson Ski Equipment makes expensive ski gear, including boots, skis, and snowboards. The suggested retail price for a pair of skis is $1,500, and
1. Jackson Ski Equipment makes expensive ski gear, including boots, skis, and snowboards. The suggested retail price for a pair of skis is $1,500, and that is the price listed on the company's website for direct sales. The company sells the skis to retailers at a wholesale price of $700. High-end retailers in Aspen, Colorado, sell the skis for $1,400-$1,500. However, the same skis can be ordered new on Amazon and two other national websites for $1,000. One of these other websites is called Discountgear.com. This month, the Discountgear.com website offers a promotion: "Normally $1,500, now special SALE price: only $990" with a big banner that says: "MORE THAN 30 percent off for a limited time only!
- A complaint is filed with the FTC asserting that Discountgear.com is engaged in deceptive pricing tactics. Explain how you think the FTC would respond.
2. Amber Davis maintains a popular blog about skiing. She has more than 50,000 Twitter followers and 80,000 page views of her blog each month. Jackson Ski Equipment sends Amber a set of boots and skis to use for free for the 2014-15 ski season. Amber writes a blog entry reviewing the skis and boots, but she doesn't mention that they were being loaned to her for the season for free.
- Explain whether you think Amber has violated the FTC's endorsement rules.
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