Ethical Issues in Online Marketing

Name:Joumana Daher

Course Name: Buss 215

 Online marketing has revolutionized the way businesses promote their products and

services, offering unprecedented access to a vast audience through digital channels. However,

the explosive growth of online marketing has also brought with it a range of ethical concerns that

businesses must navigate. As companies seek to maximize their online reach and profitability,

they may encounter ethical dilemmas surrounding the privacy of individuals, the transparency of

advertising practices, and the impact of marketing on vulnerable populations. These concerns

challenge businesses to strike a balance between their commercial goals and their ethical

responsibilities to society. In this essay, we will explore three ethical issues involved with online

marketing: invasion of privacy, deceptive advertising, and targeting vulnerable populations. By

examining these issues, we can gain a better understanding of the ethical implications of online

marketing and the responsibilities that businesses have to act ethically in the digital age.

To start with, the ethics of online tracking have been widely debated due to the tension

between privacy concerns and consumer preferences for personalized advertising. According to a

study by Rodriguez et al. (2016), online tracking has been prevalent across various industries and

users have often been unaware of the extent of data collection. Moreover, Turow (2017) has

argued that tracking practices have stripped consumers’ privacy and given them less power in the

marketplace. Also, Acquisti et al. (2017) have found that individuals are willing to pay for

privacy protection and are more likely to engage with companies that prioritize their privacy

rights. To address these concerns, regulations such as the GDPR and CCPA have been

introduced to give individuals greater control over their personal data. However, ongoing efforts

are needed to ensure that online marketers comply with these regulations and respect individuals'

privacy rights while still being able to provide effective targeted advertising.
 On the other Hand, Deceptive advertising is a significant ethical issue in online

marketing. Online marketers may use various tactics to deceive consumers, such as fake reviews,

exaggerated product benefits, and misleading claims. Misrepresentation, withholding of

information, bait-and-switch selling, and packaging deceit are examples of deceptive and

unethical marketing practices, where it might lead to customers feeling that a product or service

does not deliver on its claims (Ukessays, 2017). Deceptive or false advertising can be harmful to

consumers and the society at large as it can mislead them into buying products that are not what

they seem, putting their safety and health in danger (Torhoerman Law, 2022). Furthermore, it

can damage the reputation of businesses and industries, causing a decline in sales due to the loss

of consumer trust (Torhoerman Law, 2022). Thus, it is crucial for companies to practice ethical

advertising by accurately portraying their products and services. Regulatory frameworks and

self-regulatory mechanisms, such as guidelines and evidence requirements, can prevent

deceptive advertising in crowdfunding and build trust while protecting the interests of project

creators and backers. Although internet shopping has created a new worldwide economic

environment help customers to shop at their ease from their houses, its usage in the lack of face-

to-face contact has faced the law with various issues in terms of the extent of consumer

protection (Kariyawasam and Wigley, 2017). On the contrary, face-to-face contact is better for

many reasons because it allows for more personal interaction, the ability to see and touch

products before buying, the chance to ask questions and receive immediate answers, the

opportunity to negotiate prices and terms, and the assurance of dealing with a real person rather

than a potentially anonymous online seller, which can lead to increased trust and reduced risk of

fraud or deception.
 Nonetheless, targeting vulnerable populations in online marketing raises ethical issues

that must be carefully considered and addressed to prevent exploitation and harm to those who

may be unable to make informed decisions or protect themselves from manipulative advertising.

Actually, Big Tech corporations and others have gathered massive quantities of personal

information on their customers, this collected data is used not only for internal research and

development and promotion but it is also sold to other companies for different product marketing

and promotional purposes (Callanan et al, 2021). Along with, children, the elderly, certain

minorities, and religious organizations are among the most susceptible client categories, in online

marketing, where youngsters have a lot of sways, but their understanding is limited, and they are

more prone to be swayed by compelling pictures and psychological pleas (Ukessays, 2017).

Besides, drug firms and other groups frequently take advantage of the elderly, misleading claims

regarding product efficacy are prevalent, and older consumers may make bad purchase decisions

if they believe their health is in danger where the COVID-19 pandemic has worsened this, with

numerous firms claiming to have "cure-all" remedies to combat the virus (Blue Laser, 2021). In

summary, ethical concerns around online marketing targeting vulnerable populations can be

addressed through monitoring of personal data, implementing age verification systems, and

providing transparent information.

In conclusion, the growth of online marketing has created ethical issues related to

privacy, transparency, and targeting vulnerable populations. Businesses must balance their

commercial objectives with ethical responsibilities to society, prioritizing honesty and respect for

individual privacy. By doing so, they can build trust with their audience and contribute positively

to society. Ethical online marketing requires finding a balance between commercial goals and

social responsibility.
References:

Acquisti, A., Brandimarte, L., & Loewenstein, G. (2015). Privacy and human behavior in the age
of information. Science (American Association for the Advancement of Science), 347(6221),
509-514.
https://doi.org/10.1126/science.aaa1465

Blue Lazer, (2021) Ethical Target Advertising: Where Should Marketing Draw The Line?

https://www.bluelaserdigital.com/ethical-target-advertising/

Callanan, G. A., Perri, D. F., & Tomkowicz, S. M. (2021). Targeting vulnerable populations: The
ethical implications of data mining, automated prediction, and focused marketing. Business and
Society Review, 126(2), 155-167.
https://doi.org/10.1111/basr.12233

Kariyawasam, K., & Wigley, S. (2017). Online shopping, misleading advertising and consumer
protection. Information & Communications Technology Law, 26(2), 73-89.

https://doi.org/10.1080/13600834.2017.1289835

Turow, J. (2017). The aisles have eyes : How retailers track your shopping, strip your privacy,
and define your power. Yale University Press.

https://go.exlibris.link/Mrdmkl1q

UKEssays. (November 2018). Ethical Issues In Marketing Vulnerable Customer Groups.

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