FIRMware is SOFTware (code) that contains the instructions to run HARDware. In most cases you would experience it, hardware is running an OS (Operating System) which manages all of the firmware ‘packages’. Many electronics, particularly more sophisticated, have firmware that is directly loaded onto the device which has a proprietary OS with limited to no graphical interface.

I am a layperson so if an expert can weigh in on my take I’d appreciate it!

This is illegal and you can file a complaint with the FTC:

https://reportfraud.ftc.gov/#/