Although advertising has a lot of benefits, it has been criticised on the following grounds : 

1. Higher Prices : Advertising increases prices of products to consumers because the expenses incurred on advertisements are passed on to consumers. However, advertising may not increase prices if it leads to large scale production. 

2. Creation of Monopoly : Big firms spend huge amount of money on advertising. Small firms cannot compete with them and ultimately fail. As a result, big firms become monopolies and use their monopoly power to exploit consumers. 

3. Wastage of Resources : Money spent on advertising is sheer waste because it does not add to the utility of products and services. Most of the advertisements are either ignored or escape the attention of consumers. Advertisements do not create new demand but only shift demand from one product to another. 

4. Misleads the Consumer : It is said that advertising is often deceptive and misrepresents • facts to the consumer. Exaggerated or tall claims and flowery language are used to dupe unwary consumers. They are induced or defrauded through bogus testimonials and false comparisons to buy goods of doubtful value. 

5. Undermines Social Values : Modem advertising exerts such a corrupting influence on cultural and social life that it is not only wasteful but immoral. Many advertisements are highly objectionable and socially undesirable as they encourage social evils like drinking and smoking. To some extent advertising spoils the landscape and diverts attention of drivers. Some advertisements may really be in poor taste but majority of them help to improve social standards.