All NewsEducationTV
Equities & FundsCrypto & Digital AssetsAI & TechnologyBusiness & CorporateUS Politics & PolicyGeopolitics & Global RiskMacro, Rates & FXCommodities & EnergyEuropean Politics & MarketsAsia-PacificReal Estate & Property
All NewsHome
← Back to Business & Corporate

Companies Face Backlash Over Controversial Products and Advertisements

Created at 25 Aug · 6:26 PM1 source↑ Market-relevant
IN SHORT

Global brands including Target, Starbucks, and Anheuser-Busch have faced significant backlash and financial repercussions due to controversial products and advertising campaigns that have been criticized for racial insensitivity, cultural missteps, or trivializing serious issues.

Key Numbers

2026Starbucks Korea sales decline year
2023Bud Light promotion year
2022Balenciaga campaigns year
2019Gucci sweater introduction year
2018H&M advertisement year
2017Pepsi commercial year
2017Dove advertisement year
2014Zara top introduction year
2013Mountain Dew advertisement year

Who's Involved

Target
Retailer facing backlash over Halloween costume and Pride merchandise
Starbucks Korea
Unit that suffered significant sales decline after marketing campaign
American Eagle
Company whose jeans ad campaign faced criticism
Anheuser-Busch
Company whose Bud Light brand faced backlash
Dylan Mulvaney
Transgender influencer featured in Bud Light promotion
Balenciaga
Fashion house that issued apologies for advertising campaigns
Gucci
Fashion brand that withdrew a sweater criticized for blackface imagery
H&M
Fashion group that apologized for a sweatshirt slogan
Pepsi
Company that scrapped a commercial featuring Kendall Jenner
Kendall Jenner
Model featured in a controversial Pepsi commercial
Dove
Brand that faced backlash for a body wash advertisement
Zara
Retailer that removed a children's top resembling Nazi camp uniforms
Tyler the Creator
Hip-hop artist who developed a controversial Mountain Dew advertisement
Companies Face Backlash Over Controversial Products and Advertisements

↳ Why This Matters

These controversies highlight the increasing scrutiny brands face regarding their marketing and product decisions, demonstrating how cultural missteps can lead to significant reputational damage, financial losses, and a loss of consumer trust.

Key facts

  • Target apologized and pulled a Halloween costume criticized for resembling racist caricatures.
  • Starbucks Korea saw a significant sales decline after a marketing campaign was perceived to reference a brutal military crackdown.
  • Anheuser-Busch's Bud Light promotion with transgender influencer Dylan Mulvaney led to a conservative backlash.
  • Gucci and H&M withdrew products and apologized for designs criticized as racist or evoking blackface imagery.
  • Pepsi and Dove issued apologies for advertisements that trivialized protests or depicted racial insensitivity.

Global brands have recently faced significant backlash and financial repercussions due to controversial products and advertising campaigns. These incidents, often involving cultural missteps or insensitivity, have drawn widespread criticism on social media and impacted sales and brand reputation.

Target experienced criticism for a Halloween costume that some consumers deemed a racist caricature, leading to its removal and an apology. The retailer also faced customer backlash in 2023 over its Pride Collection, prompting the removal of some LGBTQ-themed merchandise to protect employee safety. The controversies have affected the company's stock.

Starbucks' South Korean unit suffered a "very significant" decline in sales following a marketing campaign in early 2026 that appeared to reference the brutal military crackdown on the Gwangju Uprising of 1980. The company dismissed the head of Starbucks Korea in response.

American Eagle's 2025 'Sydney Sweeney Has Great Jeans' ad campaign drew backlash on social media for perceived racial undertones, though the company later called it a success. Anheuser-Busch InBev's Bud Light promotion with transgender influencer Dylan Mulvaney in 2023 led to a conservative backlash, causing the brand to lose its long-held position as America's best-selling beer to Constellation Brands' Modelo Especial.

Balenciaga faced apologies from its creative director and CEO in 2022 for two separate advertising campaigns. Gucci withdrew a black balaclava sweater criticized for evoking blackface imagery, and H&M apologized and removed a sweatshirt with the slogan 'Coolest Monkey in the Jungle' after it was criticized as racist.

Pepsi scrapped a 2017 commercial featuring Kendall Jenner within 24 hours after it sparked outrage for trivializing U.S. rights protests and civil unrest. Dove faced a public relations crisis in 2017 for a body wash advertisement showing a black woman removing her top to reveal a white woman, and previously in 2011 for an ad that implied black women had 'before' skin issues while white women had 'after' smooth skin. Zara removed a children's top decorated with a six-pointed star in 2014, which resembled uniforms worn by Jewish concentration camp inmates. Pepsi's 2013 Mountain Dew advertisement, developed by hip-hop artist Tyler the Creator, was criticized for reinforcing racial stereotypes and trivializing violence against women.

Frequently asked questions

Companies including Target, Starbucks, American Eagle, Anheuser-Busch, Balenciaga, Gucci, H&M, Pepsi, Dove, Zara, and Mountain Dew have faced backlash for their products or advertising campaigns.

Criticisms included racist caricatures, cultural insensitivity, trivializing serious historical events or social issues, racial undertones, and evoking imagery associated with blackface or hate groups.

Consequences included product removals, public apologies, significant sales declines, loss of market share, and damage to brand reputation.

What Happens Next

01Companies will likely increase scrutiny of marketing campaigns and product designs.
02Brands may face continued pressure to address diversity and inclusion in their messaging.
CME Headlines
  • September 2026 Delivery Date Memo - Effective August 24, 2026
    24 Aug · 4:34 PM

How It Developed

Target faced backlash for a Halloween costume resembling racist caricatures.
Starbucks Korea experienced a significant sales decline after a marketing campaign referencing a brutal military crackdown.
American Eagle's 'Sydney Sweeney Has Great Jeans' campaign drew criticism for perceived racial undertones.
Target removed LGBTQ-themed merchandise from its Pride Collection due to customer backlash.
Anheuser-Busch's Bud Light promotion with Dylan Mulvaney led to a conservative backlash.
Balenciaga faced apologies for two separate advertising campaigns in 2022.
Gucci withdrew a black balaclava sweater criticized for evoking blackface imagery.
H&M apologized and removed a sweatshirt with the slogan 'Coolest Monkey in the Jungle'.

Sources

T1
Factbox-Companies face backlash over controversial products and advertisement campaignsReuters

Related Stories

Target shares fall 5% after Halloween costume backlash
24 Aug · 7:26 PM
Lego sales jump 21% on World Cup and F1 sets
25 Aug · 7:04 AM
Judge rejects First Brands' debt repayment plan, orders liquidation
24 Aug · 11:15 PM
SK hynix union rejects tentative wage deal
25 Aug · 12:56 AM
US Employers to Cut Weight-Loss Drug Coverage Amid Rising Healthcare Costs
25 Aug · 2:11 PM