Hann Healthcare, a manufacturer and seller of the pediatric cranial correction medical device brand "Hanni Helmet," has come under scrutiny from the Fair Trade Commission for deploying employees disguised as consumers to write promotional posts.
The Fair Trade Commission announced on the 30th that it decided to impose a corrective order on Hann Healthcare for false, exaggerated, and misleading advertising practices.
Hann Healthcare is the market leader in the cranial correction device sector and is well recognized among parents raising young children. A cranial correction device helps to correct the head shape of infants and toddlers that is not round and asymmetrical to resemble a more normal shape.
According to the Fair Trade Commission's investigation, from February 8 to September 15, 2022, Hann Healthcare instructed its employees to join an internet cafe operated by the company and write comments promoting products while pretending to be actual consumers. One employee wrote comments such as "Our second child also hesitated, but we went with Hanni Helmet," and "I think it would be good to consult at Hanni Helmet." The employee did not disclose that the post was written by a Hann Healthcare staff member.
Consumers perceived the false reviews written by employees as "reviews from regular consumers who purchased and used the product themselves." The Fair Trade Commission deemed that many consumers could be misled into thinking the product was satisfactory or that its cranial correction effect was excellent, thus potentially increasing sales.
The Fair Trade Commission stated, "There is a risk of influencing consumers' rational purchasing decisions and undermining fair transaction order in related markets," adding that it had identified and penalized Hann Healthcare for deceiving consumers through false and misleading advertising that exploited parents' psychology.