The live streaming industry, worth USD 38.87 billion in 2022 and expected to grow to USD 256.56 billion by 2032 (CMI, 2023), has become a major force in digital media. However, its rapid growth has also raised significant ethical concerns, which as a digital marketing executive, I have witnessed first-hand. Streamers often use deceptive tactics, such as creating false urgency or faking their own popularity, to induce viewers into making impulsive purchases. Recent scandals, including misleading product promotions and fabricated claims by top streamers, further highlight the industry's ethical issues. There is an urgent need to address these issues that threaten trust, consumer well-being, and the industry's future.
Existing research on live streaming has primarily focused on consumer behaviours that enhance profitability, such as purchase intentions and gifting, while overlooking broader ethical challenges. Studies on live streaming ethics often address only one or two aspects, such as malicious selling and privacy violation, with little examination of the mechanisms driving unethical practices. To address these gaps, this study explored the ethical challenges of live streaming and the mechanisms that drive unethical behaviour using a qualitative approach and semi-structured interviews with 16 industry practitioners, including streamers, marketing managers, marketing agency owners, and e-commerce experts.
The findings revealed 19 distinct ethical issues in live streaming, which were systematically categorised into six types: deception, coercion, unhealthy streamer-viewer relationships, privacy violations, dissemination of harmful values, and exploitation of legal loopholes. These categories encompass a wide range of unethical practices, such as false advertising, fake testimonials, and forced endorsements. Additionally, the study identified three critical mechanisms driving these issues: asymmetric power relations between streamers and viewers; psychological manipulation of viewers; and insufficient regulatory frameworks. These mechanisms operate individually and interact in a cyclical manner, reinforcing one another and intensifying ethical challenges within the live streaming ecosystem.
This research makes several theoretical contributions. Firstly, it fills critical gaps in the marketing literature by offering a holistic examination of ethical challenges in live streaming. Secondly, it enriches existing research by identifying the underlying mechanisms contributing to unethical practices. Thirdly, it provides a comprehensive analysis of the interplay between these mechanisms, highlighting feedback loops that intensify unethical behaviours. Lastly, it expands the understanding of parasocial relationships by revealing their darker implications, demonstrating how these one-sided bonds can be weaponised for financial and emotional exploitation.
Practically, this study offers insights into the perspectives of practitioners within the industry. It highlights the need for stronger regulations and industry accountability in live streaming, including criminal penalties for unethical practices, mandatory background checks for streamers, and stricter content moderation. Platforms must enhance transparency and promote ethical conduct, while consumer education initiatives are essential to empower viewers and protect them from exploitation. Overall, this research lays a foundation for future work on ethical live streaming, opening avenues for exploring ethical challenges from a global perspective, examining psychological mechanisms from a consumer perspective, and finally, investigating the overall well-being of streamers.
