What term refers to exaggerated claims made about the benefits of products or services?

The term that refers to exaggerated claims made about the benefits of products or services is sales puffery. This concept involves the use of subjective opinions, statements, or claims that exaggerate the merits of a product or service but do not constitute factual misrepresentation or deceit. Puffery is often considered acceptable in advertising because it is recognized that these claims are hyperbolic and not meant to be taken literally. For example, saying a product "works wonders" or "is the best in the world" may be seen as puffery because these statements promote enthusiasm and appeal without being objectively verifiable.

In contrast, while false advertising involves deceptive or misleading statements about a product or service that can cause harm to consumers and is illegal, puffery is typically legal and accepted as a normative practice in marketing. Misrepresentation, on the other hand, pertains to making false statements that can lead to legal consequences, while hype marketing usually refers to creating excitement or buzz around a product, often through promotional strategies, but does not specifically emphasize exaggerated claims. Thus, sales puffery best encapsulates the idea of exaggeration without legal implications.