According to an AFP report, an investigation into Samsung's practices has been launched by the Taiwanese Fair Trade Commission on the basis of the allegations that the bigwig device manufacturer was making payments to students for posting negative online comments about the devices manufactured by its closest rival HTC.

As per the allegations, which brought Samsung Electronics Taiwan under the scanner, students were hired by Samsung to not only write derogatory and inflammatory comments about HTC's devices, but also to recommend Samsung's own handsets.

Going by the AFP report, the Fair Trade Commission said that the alleged practice being followed by Samsung, apparently to promote its own devices, amounted to false advertising by the company.

The commission's Sun Lih-chyun said that the case was set up against Samsung last week after the commission received complaints about the company's allegedly competition-thwarting behaviour evident from the `fake web reviews.'

Meanwhile, in its defense, Samsung said in an official sent to CNET: "Samsung Electronics remains committed to engaging in transparent and honest communications with consumers as outlined in the company's Online Communications Credo."

Noting that Samsung Electronics employees worldwide have been encouraged "to remain faithful to our Credo," Samsung described the recent `fake web reviews' incident as an "unfortunate" happening; and added that the incident had occurred "due to insufficient understanding of these fundamental principles." The company also said that planning to give proper training to employees, to avoid a repeat of similar events in future.