This article examines paradoxes, challenges, and opportunities in the context of ethical customer experience management. Central to this discussion are different stakeholders such as firms, customers, policymakers, regulators, and society at large, as well as key issues associated with them. Firms aim to design and manage compelling experiences using customer data but face challenges balancing cost, customization, ethical concerns, and fairness in customer experience management. Customers should be encouraged to reflect on whether to share personal information for customized experiences, as well as on how far their responsibility goes in ensuring critically informed decision‐making. Policymakers and regulators must integrate the views of various stakeholders into policies and guidelines that promote a healthy society. Importantly, the digitization of customer experience has given rise to unprecedented ethical concerns related to the prospect of ‘programming’ these experiences. The shrinking temporal and spatial distance between stimuli, customer action, data footprint, and tracking poses significant reflections and dilemmas for both customers and firms. In this context, it is essential to determine ethical reflections and guidelines for customer experience design and management. We argue that firms should involve customers in assessing the implications of their experiences, while policymakers should facilitate the involvement of all stakeholders (including firms, customers, regulators, academics, and NGOs) to create an ongoing, healthy dialogue. This dialogue should guide a continuing debate aimed at evaluating the implications of specific actions in customer experience management.