Question
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
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 store and personal social media accounts with #Pear. Pear also sends out free products to various "influencers" along with a note that 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.com 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 product and can't wait to share what we have in store next! Keep dancing, The Pear Family of Brands Pear sent its new product, a cellular phone called the uPhone, out to one hundred influencers for free with the enclosed note. Many influencers posted reviews. About 10% of the influencers 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 Jada talking directly to the camera while prominently holding the uPhone. Jada gave a "mixed" review, both praising and criticizing the uPhone. In the video, Jada explained 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 uPhone. Jada's video also contained some criticisms. She said, "I had two problems with my uPhone's battery. First, when playing music 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 in my purse- it's gets kinda' hot! If you love it like me, click here and use my code for 20%off!" 3 Jada's post included the following hashtags: #cutephone #onmyphoneallthetime #imgungry #badhairday #burritos #freephonesrule #freestuff #usemycodesoidonthavetogetajob #beingpopularhasitsperks #videooftheday #lmfao #cats #phonesofinstagram #moneymoneymoney Alexa purchased the new uPhone using Jada's code. After a week of using the uPhone, she suffered 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 ARE 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 to include the arguments you think the other side would make.) 2. HAS PEAR, INC. VIOLATED ANY LAWS RELATED TO ITS ADVERTISING AND/OR BUSINESS PRACTICES? (Answer in IRAC format, and be sure to include the arguments you think the other side would make.)
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