The Clairemont Cookie Company has developed an automatic cookie making machine, the Clairemont3000, which automatically mixes the
Question:
The Clairemont Cookie Company has developed an automatic cookie making machine, the Clairemont3000, which automatically mixes the batter, forms the dough into a variety of shapes, and then bake them to the level of doneness according to the settings selected by the consumer.
Gray sees an advertisement for the Clairemont3000 and, excited by this new device, purchases a Clairemont3000 online. After the package arrives at his home, Gray opens the box and sees the following note:
"Thank you for buying a Clairemont3000! This machine must be connected to the internet to work. As part of the Clairemont3000's functionality, you must pay a recurring subscription fee of $29.99 every month. If you fail to pay the monthly subscription fee, Clairemont Cookie Company will send a signal through the internet to your machine to disable it until you renew your subscription. Because you have opened the box, we are not able to accept returns of the machine. Enjoy your baking!"
Is the recurring subscription fee an unfair act or practice in violation of Section 5 of the Federal Trade Commission Act. Explain your answer.
The Clairemont Cookie Company has developed an automatic cookie making machine, the Clairemont3000, which automatically mixes the batter, forms the dough into a variety of shapes, and then bake them to the level of doneness according to the settings selected by the consumer.
Gray sees an advertisement for the Clairemont3000 and, excited by this new device, purchases a Clairemont3000 online. After the package arrives at his home, Gray opens the box and sees the following note:
"Thank you for buying a Clairemont3000! This machine must be connected to the internet to work. As part of the Clairemont3000's functionality, you must pay a recurring subscription fee of $29.99 every month. If you fail to pay the monthly subscription fee, Clairemont Cookie Company will send a signal through the internet to your machine to disable it until you renew your subscription. Because you have opened the box, we are not able to accept returns of the machine. Enjoy your baking!"
Is the recurring subscription fee an unfair act or practice in violation of Section 5 of the Federal Trade Commission Act. Explain your answer.
Expert Answer:
Based on the information provided the recurring subscription fee for the Clairemont3000 cookie making machine may be considered an unfair act or pract... View the full answer
