When does FOMO marketing cross the line?

We’ve all been there—staring at a flashing “Only 1 left in stock!” message, feeling the pressure of a countdown timer, or seeing an influencer rave about a product that’s selling out fast. This is FOMO (Fear of Missing Out) marketing at work. It’s powerful, effective, and widely used. But when does it go too far?

Urgency-driven marketing walks a fine line between creating excitement and manipulating consumers. Brands that cross into unethical territory risk losing trust, while those that use urgency responsibly can build stronger engagement.

Let’s explore where FOMO marketing gets dark, when it’s done right, and how brands can create urgency without deception.

How FOMO marketing plays on human psychology

FOMO marketing works because of loss aversion—the idea that people fear missing out on something more than they value gaining it. Scarcity triggers the brain’s survival instincts, making us act fast to secure what seems exclusive.

Psychologists call this the “scarcity effect”, where perceived rarity boosts desirability. Marketers use this tactic in everything from Black Friday sales to limited-edition sneaker drops.

But when brands fake urgency, they exploit this instinct unfairly. Let’s look at some Indian examples of both ethical and unethical FOMO marketing.

Ethical vs. unethical FOMO: Indian social media examples

Ethical FOMO: Swiggy’s ‘Only for Today’ Discounts

Swiggy offers real one-day-only discounts like “50% off on Biryani – Today Only!” These deals actually expire, creating urgency without misleading consumers.

Unethical FOMO: Fake Stock Alerts on E-Commerce

Many Indian e-commerce platforms show “Only 2 left in stock” even when there’s plenty available. This false scarcity pressures customers into buying without transparency.

Ethical FOMO: Zomato’s ‘Trending Restaurants’ Feature

Zomato highlights “1000+ orders today!” to show real popularity. Since this data is genuine, it nudges customers without manipulation.

Unethical FOMO: Fake ‘Price Hike Coming Soon’ Messages

Some brands falsely claim “Prices increasing tomorrow!” when no hike is planned, tricking buyers into rushed decisions.

When working on an air pollution awareness campaign for Aditya Birla Group, we at Tonic leveraged urgency differently—not to sell, but to drive action on air pollution and to avoid the impending doom it may cause. Instead of artificial scarcity or stress-inducing messages, we used real-time data, AR filters, and educational content to create a compelling but ethical call to action. This approach proves that urgency-driven marketing can be both impactful and responsible when it serves a real purpose.

Where brands should draw the line

1. Is the scarcity real?

If you’re using limited stock alerts, ensure they are based on actual inventory data, not artificial constraints.

2. Are you stressing or exciting the consumer?

A genuine time-limited offer should create enthusiasm, not anxiety. Fake countdowns can make customers feel tricked.

3. Is there transparency?

If a deal is truly limited, brands should show proof, like real-time updates or a clear end date.

4. Are you building trust or just a one-time sale?

Short-term FOMO tricks might boost conversions, but long-term trust matters more. Ethical urgency builds loyal customers, while deception pushes them away.

Final Thoughts: FOMO marketing can be powerful and ethical

Urgency-driven marketing is not inherently bad—but it must be used responsibly. Brands that rely on fake scarcity and false pressure may see short-term gains, but they risk long-term damage.

This article is penned by Sudish Balan, Co-founder & Chief Creative Officer, Tonic Worldwide

Disclaimer: The article features the opinion of the author and does not necessarily reflect the stance of the publication.