2

IRAC

1

Consumer electronics manufacturer

Pear

, Inc. set up a website allowing consumers to

upload self

-made video

reviews

explaining why they like Pear

products. Pear

doesn't

prescreen those videos

, although customers are offered

a $20 gift card to the

Pear

Store when they upload a review

on both the sto

re and personal

social media

accounts with #Pear

. Pear also

sends out free products to various

"influencers

" along

with a note t

hat says,

Hello beautiful humans!

We have lots of new, exciting products about to be released. We

are sending you this

newest

product

and we know you will just

love it! Please feel free to share how much you love our new

product online

at

Pear.c

om and on your social

media accounts -

make sure to tag #Pear so we know you love it, too!

Here is even

a code to use

- if your followers use

the

code, you

'll make a

commission!

We are so excited to share this new p

roduct and

can

't wait to s

h

are what we have in store next!

Keep dancing,

The Pear Fa

mily of B

rands

Pear sent it

s new product, a cellular phone called the

uPhone

, out to one hundred

influencers for free with the enclosed note. Many influenc

ers posted reviews

. About

10%

o f the

in

fluenc

ers actually contacted Pear to report that the

uPhone was

overheating

and

either

posted negative reviews or no reviews.

One influencer

with 1 million followers

, Jada

, received Pear

's new cellular phone

and

uploaded a self

-made video to

her Instagram feed. The video showed J

ada

talking

directly to the camera

while prominently holding the uPhone

. Ja

da

gave a "mixed"

review, both praising and criticizing the uPhone

. In the video, Jada ex

plained that she

loved the how the new Pear

phone looked, as well as how fast it was and how many

cute covers

and accessories Pear made to protect and decorate the

uP

hone. Ja

da

's

video also contained some criticisms. She said, "

I had two problems with my uPhone

's

battery. First, when playing musi

c on my uPhone, it felt like after playing just one or

two

short playlists

, the

uPhone

needed a recharge. Second, the uPhone

's battery runs

really hot.

That's great if you want to fry an egg, but not so great if you stick the

uPhone

in your pants pocket.

Anyway, because it

's super

-cute and

I 'm home all the

time during the pandemic so charging my phone isn

't a problem, I

'll say it

's a keeper!

I'll just keep it i

n my purse

- it's gets kinda

' hot!

If you love it

like me

, click here a

nd use

my code for 20%off!

"

3

Jad

a's post included the following hashtags: #c

utephone #

on

my

phone

allthe

time

#imgungry #badhairday #burrito

s #freephones

rule #freestuff

#usemycodesoidonthave

toget

ajob

# beingp

opularhasit

sperks #videooftheday #lmfao

#cats #phoneso

finstagram #moneymoneymoney

Alexa purchased the new

uPhone using Jada

's code

. After a week of using the

uPhone, she s

uffered severe burns on her right leg when the battery malfunctioned

and it overheated in

her pants pocket.

Alexa complained to the FTC and the FTC

launched an investigation.

YOU A

RE AN ATTORNEY FOR THE FTC.

1. HAS

JADA VIOLATED ANY LAWS RELATED TO ITS ADVERTISING AND/OR

BUSINESS PRACTICES? (Answer

in IRAC format

, and be sure t

o include the argu

ments

you think the other side would make.)

2. HAS P

EAR, INC. VIOLATED ANY LAWS RELATED TO ITS ADVERTISING AND/OR

BUSINESS PRACTICES? (Answer

in IRAC format

, and be sure t

o include the argu

ments

you think the other side would make.)