Deceptive marketing is an increasingly popular tactic and a rising issue for the consumer. Marketing has always been a competitive game, and with more businesses than ever on the market, capturing attention and driving sales is challenging! This has led some companies to implement tactics meant to mislead or deceive potential customers. Not only is this deceptive marketing unethical, but it can also be illegal, leading to fines, product recalls, and loss of public trust.
So what constitutes deceptive marketing, and how can we avoid it?
What is deceptive marketing?
Deceptive marketing is exactly what it sounds like: marketing practices that intentionally mislead consumers about a product or service. With tactics designed to create a false impression or exaggerate claims, those who practice deceptive advertising can make products or services seem more appealing than they truly are. Their goal is to manipulate consumer perception and drive sales, often at the expense of honesty and transparency.
Common forms of deceptive marketing
Deceptive marketing has many faces; how many can you recognize?
“No publicity is bad publicity”
While positive user-generated content (UGC) itself is a great marketing resource, negative messages can also be used to sway the audience into making a purchase. You may have seen videos floating around with social media users, often posing as opponents of a brand with a bad reputation, first mentioning a negative connotation surrounding the business. Then, they entice viewers to follow links or check out a website for gift cards, sales, or promo codes. These “negative reviews” are often paid for by the business as a cheap (and sleazy) marketing tool, and the “prize” is, more often than not, fraudulent or tied to prerequisites like inviting your friends to shop or spending a certain amount of money beforehand. Advertisements like the one to the right are becoming increasingly popular.
Faked endorsements
Some brands create fake or exaggerated endorsements from celebrities, experts, or satisfied customers to promote a product or service. A skincare brand creating these ads might use photos of a celebrity who supposedly endorses their product, when in reality, the celebrity has never used it or has not made any such endorsement. Similarly, they often steal content from smaller creators to use in their ads without permission.
Hidden fees
Some companies may advertise low prices on their product or service, but fail to disclose additional fees or costs that significantly increase the total expense. If you’ve ever had to rent a moving van, you’ve likely run into this kind of marketing. Say you saw a sign reading something along the lines of “$20/day truck rental.” You might’ve assumed this was a flat fee, but upon arriving to pick up your rental, additional charges for insurance, mileage, and fuel make the final cost much higher than anticipated.
False advertising
Some companies use false or misleading statements to tout their products. For example, a brand might claim their weight loss supplement can help users lose 20 pounds in a week without exercise, providing before-and-after photos with dramatic results. In reality, such results are often unrealistic and unproven. So, the company likely used photo editing, stolen imagery, or cherry-picked testimonials from people who had used additional, unmentioned methods to achieve their results. To the left are two Instagram posts, made by the same user. They claim to have a weight loss guide, however, there are a few obvious signs of fraud. This includes claims of a free product (which suddenly becomes a paid product in their second post), over-exaggeration of their product's effectiveness, and stolen photos with someone else's watermarks (*photos have been removed for privacy).
Bait and switch
This tactic involves advertising a product or service at a low price to lure customers in, only to pressure them into purchasing a more expensive item. The advertised product may either not be available or is of poor quality. For instance, an electronics store advertises a high-quality TV at a very low price. When customers arrive, they find that the TV is out of stock or of bad quality, and the store tries to sell them a more expensive model instead.
Misleading labels:
Some labels are made using terms or claims that suggest a product is healthier, more effective, or more premium than it is. At the grocery store, you’ll likely see a good bit of packaging labeled “natural” or “organic,” or using colors and imagery that suggest a healthier choice. However, these products often contain only a small percentage of these ingredients, while the bulk of the product is made with artificial additives.
How to protect yourself from deceptive marketing
With so much information being misrepresented in advertising today, it’s hard to avoid becoming a victim of the issue. Not only are you putting your purchase at risk in terms of quality and functionality, but also your personal information. With fake links, insecure sites, and companies collecting your data to sell, your identity and card information can be stolen. Stay vigilant, and…
Do your research: Before making a purchase, research the product or service for authenticity, quality, and reliability. Look for reviews, ratings, and information from independent sources.
Read the fine print: Always read the terms and conditions, and be wary of hidden fees or conditions that are not immediately apparent.
Verify claims: Check the validity of any claims made in advertisements, especially those offering coupon codes or “free” gift cards. Look for third-party verification or scientific evidence supporting the claims.
Be skeptical: If a deal seems too good to be true, it probably is. Be cautious and investigate further before committing to your purchase.
Report deceptive practices: If you encounter deceptive marketing, report it to consumer protection agencies or relevant regulatory bodies. This helps protect other consumers from similar issues.
The Federal Trade Commission Act (FTC) is a U.S. federal law that requires any advertisement to be truthful. Misleading content could warrant a federal lawsuit.
Always remember!
Deceptive marketing is a dangerous tactic, putting both buyer and seller at risk. It’s important to stay informed and vigilant, protecting yourself from misleading tactics and honesty in transactions. Keep in mind—if something seems too good to be true, it’s worth digging a little deeper before taking the plunge.
