Feature Story: Dangerous World of Online Advertising
In this article, we’ll explore the evolution of advertising, from its humble beginnings as a simple tool for promoting products to its current state as a battleground for capturing consumer attention. Recently, there’s been a noticeable shift in focus, with companies fiercely competing to stand out in the crowded marketplace, some of them have decided to switch their tactics to deception. I’ll get deeper into this trend, discussing how grabbing attention has become essential for driving sales. From social media influencers to corporate executives, everyone has a hand in shaping how advertisements reach consumers. Additionally, the science behind advertising strategies is always evolving, continually seeking new methods to engage and persuade audiences. This is where the shift starts, where companies and individuals begin to engage in deceptive forms
False advertising has plagued industries for centuries, as companies seek to gain a competitive edge by exaggerating their products’ benefits or outright lying about their capabilities. One of the earliest notable cases occurred in the late 19th century when the Federal Trade Commission (FTC) was established in the United States to combat deceptive advertising practices. At that time, medicines claiming to cure various illnesses without scientific evidence flooded the market, leading to the passage of the Pure Food and Drug Act in 1906, which aimed to regulate these fake claims. In the mid-20th century, false advertising continued to be a concern, with cases like the Federal Trade Commission v. Sterling Drug Inc. (1960) which helped to set legal precedents. Sterling Drug Inc. was found guilty of falsely advertising its product “Bayer Aspirin” as superior to generic aspirin. This case highlighted the need for stringent regulations to protect consumers from misleading claims made by corporations.
Children and young adults have come to be very fond of these online influencers and they pay close attention to what they do and all of their online posts. This can lead to some serious concern when it comes to paid social media advertising and its ethics as well. Influencers have the opportunity to send a very positive message out to these kids on social media and some of the time they breach the trust of their audiences and try to sell them products they don’t really need. This has happened in many cases over the years but some stand out more than others. One of the more notable instances of this was when Logan Paul launched his “CryptoZoo” NFT/Cryptocurrency which was really just a scam. In 2022, around the time that NFT’s and cryptocurrency were hitting a major boom, Logan and a few other of his influencer friends decided that they would launch a cryptocurrency/game site under the name CryptoZoo. He didn’t make his subscribers or followers know that he was the one in charge of the cryptocurrency or that he had any involvement, yet he still encouraged them to go and buy stock and buy the currency, which then raised the price of it. When it reached a massive high in value, everyone in control of the crytpo, including Logan, who had the most currency out of everyone, decided to sell off their stock and they profited as much as possible, while leaving their subscribers at a massive loss on their investment. This speaks to the major breach of trust that happened in this case and many others like it, where there is an influencer that younger children look up to and trust has fully taken advantage of their young and uninformed subscribers for personal gain.
Another example of deceptive advertising through YouTube mainly was with the “CS:GO Lotto” scam run by a few other YouTubers in the past. The CS:GO Lotto scandal, which unfolded in 2016, revealed a darker side to influencer marketing within the gaming community. Trevor Martin who goes by “TmarTn” and Tom Cassell who goes by pro “ProSyndicate”, who are two prominent YouTubers with millions of subscribers, were at the center of the controversy. It emerged that they were the owners of CS:GO Lotto, a gambling website centered around in-game skins for weapons and player models from the popular game Counter-Strike: Global Offensive. What sparked outrage was their promotion of the site without disclosing their ownership, just like the situation with Logan Paul and his CryptoZoo scam. By doing this, TmarTn and PyroSyndicate were leading viewers to believe they had stumbled upon a lucrative opportunity, rather than profiting directly from it. They showcased themselves winning big prizes, creating the illusion of it actually being fair and it created a lot of excitement around the platform. However, once their involvement was exposed, the gaming community erupted in criticism and anger, including myself at the time, accusing them of deceptive advertising and exploiting their influence for personal gain. Despite facing intense public backlash and investigations by the Federal Trade Commission, Martin and Cassell avoided significant legal repercussions, with the FTC choosing not to pursue formal charges. Either way, the CS:GO Lotto scandal served as a wake up call for people who like to watch these types of Youtubers, highlighting the need for greater transparency and ethical standards when it comes to influencer marketing, especially within industries targeting young and impressionable audiences.
