A popular oral healthcare brand is under fire by the the Australian Competition and Consumer Commission, and is being ordered to pay a whopping fine after it used employees to create fake misleading testimonials.
The brand, which is sold at Woolworths and Coles, has been fined $138,600 in penalties for seven infringement notices for alleged false and misleading representations in its social media advertising.
According to the ACCC, the company posted social media videos showing supposedly random shoppers praising its products, but an investigation found they were Hismile employees.
In addition, Hismile uploaded videos to social media of its Glostik Tooth Gloss product which may have given consumers the impression that the product would remove stains on teeth.
In reality, the product only temporarily concealed stains rather than removing them permanently. The product has now been discontinued.
ACCC commissioner Luke Woodward said the brands advertisements may have misled Australians into buying products that did not have the results promoted by the brand.
“Misleading social media advertisements can reach millions of consumers and may impact their purchasing decisions,” he said. “All businesses must ensure they are not making misleading or deceptive claims on social media platforms.”
Hismiles admits its conduct in posting the videos on social media was or was likely misleading and in breach of the Australian Consumer Law.
The brand has since agreed to not represent that any products produce permanent results, when this is not the case.
The oral healthcare provider also agreed it would not represent that any of its staff was a random member of the public providing a testimonial, review, or commentary regarding any Hismile product.
As part of its commitment, Hismile will also establish and implement a competition and consumer law compliance program and will publish a notice on its website and social platforms, informing consumers about the ACCC action.
