Definition
When a user is placed under time pressure, they are less able to critically evaluate the information shown to them because they have less time and may experience anxiety or stress. Providers can use this to their advantage, to push them into completing an action that may not entirely be in the user's interest.
Example
The Shopify app “Hurrify” is made by a company called Twozillas. It can be used to create various fake urgency messages, one of which is a fake countdown timer. In the first image, you can see what a user typically sees on a site that uses the Hurrify countdown timer. It's very prominent, animated and claims that the sale will end once the timer hits zero. However, the admin interface for sellers (second image) has a default configuration to "Run the campaign allover again" which means that the counter simply resets when it reaches zero.
Update April 2023: Hurrify appears to have been banned from the Shopify app store.
References
Countdown timer (Mathur et al., 2019), limited time message (Mathur et al., 2019).
Related laws
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Prohibit traders across all sectors from using unfair commercial practices that hinder consumers from making informed purchasing decisions.
Grant consumers the right to cancel contracts for goods or services made through remote communication channels such as the internet, email, or telephone.
Covers various aspects of consumer transactions, including the sale of goods and services, digital content, unfair contract terms, and remedies for faulty goods.
Sets standards for advertising, sales promotion, and direct marketing practices in the UK.
Requires companies to obtain consumer's consent before charging their credit or debit cards for goods or services offered through a "negative option feature."
Unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce are hereby declared unlawful.
Prohibits unfair and unlawful business practices that deceive or mislead consumers in California.
Related cases
£400,000 in fines
$2.35 million multistate settlement