Impact Of Misleading Advertisements On Customers: Psychological Effect
- IJLLR Journal
- Apr 21
- 2 min read
Sakshya. A.K., LL.M., J.S.S. Law College, Mysore
ABSTRACT
Misleading advertisements have grown widespread in India's digital marketplace, undermining customer confidence and altering purchase behaviours. This study uses psychological reactance theory to better understand how customers react when they recognise fraudulent marketing strategies, notably in the e-commerce sector. Psychological reactance arises when people consider their freedom of choice to be limited or influenced, resulting in resistance, distrust, and unfavourable brand impression. The study investigates how deceptive statements, fraudulent reviews, manipulative pricing techniques, scarcity tactics, and concealed influencer endorsements contribute to customer mistrust. These misleading activities not only influence purchase decisions, but also result in brand boycotts, unfavourable word-of-mouth, and increased regulatory attention.
Using a case study approach and secondary data analysis, this study examines real-world examples of misleading advertising strategies that resulted in customer complaints, legal challenges, or regulatory action. It focuses on notable instances involving e-commerce platforms, companies, and digital influencers that have faced interventions under the Consumer Protection Act of 2019. The research examines customer reactions using news articles, court opinions, and regulatory results to detect trends in consumer resistance, brand reputational damage, and the systemic obstacles of enforcing advertising restrictions. It also looks at how grievance redressal methods including consumer forums, self-regulatory industry efforts, and court processes work to correct deceptive marketing claims and restore consumer trust.
The findings will emphasise critical need for better regulatory enforcement, more transparency in digital advertising, and increased responsibility for e- commerce platforms and the misleading marketing by influencers. By researching consumer psychology and regulatory obstacles, this study sheds light on how deceptive advertisements alter customer perceptions, as well as the legal and legislative responses required to tackle such tactics. Strengthening enforcement procedures and raising consumer knowledge are essential steps towards creating a fair and trustworthy digital marketplace in India.
Keywords: Psychological Reactance, Misleading Advertisements, Consumer Trust, E-Commerce Regulations, Deceptive Marketing.
