Covert Marketing Advertising Law Review Paper

This paper examines the legal and ethical issues surrounding stealth marketing, especially in the current popular trend of influencer marketing on social media, and its effects on the trust and perception of consumers. The paper explores regulatory frameworks, focusing on the American FTC and the European UCPD, which govern self-regulation and disclosure requirements. This research adopts a literature review of the selected case studies and a review of general findings on advertising transparency, consumers behavior, and general cultural responses to covert advertising. The comparative method was used to determine differences between the US state laws and EU laws regarding stealth marketing. The findings indicate that when commercial intent in marketing is concealed, consumer confidence and brand loyalty are compromised. Although younger generations and customers in non-Western countries may tolerate hidden advertising to an extent, integrity is vital for long-term brand development. The study also highlights the potential of AI-supported systems to assist in compliance and increasing transparency in social media advertising. The conclusions indicate that enhanced compliance with the legal provisions on transparency and the implementation of AI monitoring mechanisms in organizations offer much potential to improve consumer confidence and ensure brand responsibility in the global marketplace