What can unrealistic or exaggerated statements in advertising potentially lead to?

Unrealistic or exaggerated statements in advertising can lead to legal action because they may be considered deceptive or misleading. When advertisements make claims that are not substantiated, consumers may feel deceived if the product does not live up to those exaggerated claims. This could result in regulatory scrutiny or lawsuits from consumers, competitors, or government agencies. Such actions typically stem from consumer protection laws designed to hold companies accountable for misleading advertising practices.

In contrast, increased sales could be a short-term effect of appealing advertising, but if the claims are deemed deceptive, that could ultimately backfire. Puffing, which refers to the use of subjective and exaggerated claims that are not meant to be taken literally, is a less severe form of exaggeration that typically does not lead to legal consequences. Greater customer trust is unlikely to be the outcome of unrealistic statements, as repeated deception can damage a company's reputation and erode consumer trust once they realize the truth behind the claims.