Abstract
This study examines the effectiveness of fact-checking technology in combating false advertising on social media. Focusing on two understudied consumer groups: vegans and vegetarians (Study 1) and mothers (Study 2), the study employs a social identity framework to explore the impact of fact-checking tools on consumer perceptions. The findings indicate that such tools can be beneficial for consumers, leading them to have a heightened sense of deception towards false advertising. However, the study also highlights the potential for fact-checking features to backfire when persuasive content emphasizes the consumer's social identity in-group characteristics. Despite consumers recognizing attempts at deception in the advertisement, they find its persuasive message more credible when it aligns with their identity group's distinctive traits. Overall, this research contributes to the literature on social identity theory, targeted advertising, message credibility, cognitive dissonance, and false information. Furthermore, the findings guide managerial decisions regarding the implementation of fact-checking features in social media advertising.