Gamification with various designs is becoming a mainstay of interactive marketing, used to pervasively and holistically to in value-creating marketing practices. Beyond marketing, gamification is commonly seen as a technology, the effects of which are benevolent and which is often employed for sustainable ends such as the improvement of wellbeing, health, and sustainable work. However, as gamification commonly, either more or less directly, is related to attempts at affecting customers’ psychological states and continued engagement, a critical reflection of the ethical ramifications of gamification is crucial. Hazards such as manipulation, exploitation, psychological distress, and conflicts with cultural norms are considered as potential challenges that should be observed. Nevertheless, there is a current lack of examination of gamification’s ethical implications in the marketing context. In this chapter, the authors explore the ethical concerns related to using gamification as an interactive marketing tool, and examine how consumers shape their ethical judgement towards gamification. The authors also suggest various ways to help marketers, designers, and policymakers to minimize the unethical consequences of gamification, and ensure that companies will use gamification to compete both ethically and responsibly.