In this hypothetical case, one of the problems is that the bracelet cannot be completely accurate, nor is it subtle; different people respond to and manage stress differently, on a physiological level and psychological level, so a simple color and symbol scale may be too much of a simplification. The difference in treatment received by a low-stress indicating users and high-stress indicating users (potentially the same user at different times) can cause dissonance and feelings of resentment, potentially exacerbating existing stress levels.
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