Ronn Torossian
Ronn Torossian

In 2025, crisis management has reached a fever pitch. Brands, corporations and individuals are now more aware than ever of the power of public relations in the digital age. What was once a field concerned with managing occasional media relations has transformed into a complex, 24/7 practice in an era where social media and digital platforms amplify every mistake. The speed at which crises unfold today is staggering, and the consequences of poor responses are even more severe. For companies, a misstep in handling a crisis can permanently damage their reputation and bottom line.

Several companies have recently made the grave mistake of mismanaging crises, showing how even the most well-known brands can fail when they ignore the basics of transparency, accountability and empathy. From tech failures to greenwashing scandals and culturally insensitive marketing campaigns, these PR disasters offer valuable lessons on what happens when crisis PR goes wrong.

1. Tesla's AI Safety Scandal: The Perils of Overpromising and Underdelivering

Tesla, the world’s leader in electric vehicles (EVs), found itself embroiled in a public relations nightmare after a catastrophic crash involving one of its vehicles with an upgraded version of its self-driving system. The crash occurred when a Tesla Model X driving in full self-driving mode veered off the road, causing severe damage and resulting in two fatalities. The vehicle's AI had reportedly misinterpreted a construction zone, failing to stop when it was supposed to.

The issue quickly exploded across social media, with experts and concerned citizens alike calling into question the safety of Tesla’s self-driving technology. As a company that has built much of its brand around innovation and cutting-edge technology, Tesla’s PR team had a monumental task ahead of them in managing this crisis. Unfortunately, their initial response was far from reassuring.

Tesla’s PR team issued a statement hours after the incident, claiming that the accident was “an isolated incident” and that their self-driving technology was constantly improving. The message seemed to downplay the severity of the crash, offering vague reassurances that the company was committed to safety. Elon Musk, the company’s CEO, further fueled the backlash by tweeting that Tesla’s safety protocols “far exceed industry standards” and implying that the media was sensationalizing the incident.

This initial response infuriated the public. Instead of taking full accountability, Tesla attempted to brush off the incident, which triggered widespread anger from consumers, regulators and advocacy groups. The public, already skeptical of the safety of autonomous vehicles, saw Tesla’s response as dismissive and insufficient.

Tesla’s failure to respond with transparency—such as acknowledging the issue and offering concrete steps to improve safety—led to an escalating crisis. Consumer trust eroded, and the incident was swiftly followed by calls for stronger regulation of autonomous driving technologies. Additionally, regulatory bodies in the U.S. and Europe announced investigations into Tesla’s self-driving system. In the weeks that followed, the company's stock price took a significant hit, and Musk faced increasing scrutiny over his leadership during a crisis.

The Tesla AI safety scandal is a stark reminder of the dangers of overpromising and underdelivering in crisis management. In today’s climate, transparency and humility in response to a crisis are non-negotiable. Had Tesla acknowledged the concerns, expressed genuine empathy, and committed to swift action, the PR fallout could have been minimized.

2. Bumble’s Data Privacy Fiasco: A Lack of Empathy and Transparency

Bumble, the popular dating app, suffered a significant PR crisis when a data breach exposed the personal information of millions of users. The breach revealed sensitive data such as user messages, location data, and even payment information. While the breach itself was serious, what made the situation even worse was Bumble’s delayed response and mishandling of the crisis.

The company waited over a week before publicly acknowledging the breach, during which time rumors and speculation spread rapidly across social media. Users were left in the dark about whether their personal data had been compromised, and the company’s silence only deepened the sense of distrust. When Bumble finally issued a statement, it was filled with jargon about “cybersecurity protocols” and “ongoing investigations,” but there was little in the way of a clear action plan or concrete steps to protect users going forward.

What Bumble failed to do was acknowledge the emotional impact of the breach on its users. In today’s digital age, consumers expect companies to take responsibility and express empathy in the face of such incidents. Bumble’s PR response lacked warmth or an understanding of the potential consequences for users, especially considering the sensitive nature of personal relationships facilitated by the app.

The lack of empathy and the delayed response damaged Bumble’s reputation, particularly in the wake of similar incidents with other tech companies. A stronger, more transparent response could have included offering users identity protection services, clearer details on how the breach occurred, and a plan to prevent future breaches. Additionally, a visible and empathetic approach to customer relations could have helped restore trust. Instead, Bumble found itself fighting an uphill battle, with angry users demanding that their data be deleted permanently and calling for regulatory oversight of the company’s practices.

3. Nestlé’s Greenwashing Scandal: A Failure to Take Responsibility

Nestlé, one of the world’s largest food and beverage companies, faced a massive PR backlash after being accused of greenwashing in a high-profile sustainability campaign. The campaign featured images of nature, trees and clean water, with messaging around Nestlé’s commitment to reducing plastic waste and becoming more sustainable. However, it quickly became apparent that the company’s claims did not align with its practices.

Investigative journalists uncovered that, despite Nestlé’s claim to be reducing its plastic usage, the company continued to use vast amounts of single-use plastic packaging in its products. Worse, Nestlé had invested millions in plastic production facilities rather than in sustainable alternatives. The campaign’s dissonance with reality was a classic case of greenwashing, and it ignited a firestorm of criticism online.

Nestlé’s PR team failed to manage the fallout effectively. Initially, they issued a standard corporate response, emphasizing their commitment to sustainability and pledging to do better in the future. However, this generic apology failed to acknowledge the specific issues raised by critics, and the company made no significant effort to address the immediate concerns. The response lacked any real accountability or specifics on how they planned to make amends.

The situation quickly spiraled out of control. Environmental activists, celebrities, and even shareholders began calling for Nestlé to take more immediate and concrete actions to change its environmental practices. The company’s stock price dropped, and the backlash became so severe that Nestlé was forced to halt its greenwashing campaign and issue a more detailed apology.

The Nestlé greenwashing scandal serves as a cautionary tale of how poor crisis PR can exacerbate an already damaging situation. Greenwashing, in particular, is a delicate area, and brands must be extremely careful not to make promises they can’t keep. Nestlé’s failure to take immediate responsibility and offer specific, transparent solutions led to public distrust. Had the company been more honest and specific about its goals, the damage to its reputation could have been minimized.

Pepsi’s Racially Insensitive Ad: A Tone-Deaf Response to Cultural Sensitivity

Pepsi found itself in the midst of another public relations disaster, echoing the infamous 2017 ad featuring Kendall Jenner that sparked widespread outrage. This time, Pepsi launched a campaign aimed at promoting unity and social justice, but it quickly came under fire for being racially insensitive and tone-deaf. The ad, which showed a group of diverse young people participating in a protest, featured an image of a Black woman holding a Pepsi can as a symbol of peace—an image that many viewers found to be patronizing and oversimplified.

The ad was widely criticized on social media for trivializing important social justice movements and for using them as a marketing tool. The backlash was swift and severe, particularly from social justice advocates and activists who accused the brand of “cashing in” on serious issues.

Pepsi’s PR team was caught off guard by the response. Instead of immediately pulling the ad and issuing an apology, Pepsi’s first move was to downplay the situation. Their initial statement was vague, focusing on the idea that the campaign was meant to “celebrate diversity” and “bring people together.” This tone-deaf response only aggravated the situation further, and public figures—including celebrities who had once endorsed the brand—began to distance themselves from the company.

In the days that followed, Pepsi finally issued a formal apology, but by then, the damage had been done. The PR failure highlighted a critical lesson in today’s climate: brands must be deeply sensitive to the issues they choose to address and avoid using serious movements as mere marketing tools. Pepsi’s failure to demonstrate genuine understanding and empathy left them exposed to a public relations disaster.

These failed crisis PR examples—from Tesla’s mishandling of an autonomous vehicle incident to Bumble’s data breach disaster, Nestlé’s greenwashing scandal, and Pepsi’s racially insensitive ad—show that crisis management in today’s hyper-connected world is more important than ever. A misstep in how an organization handles a crisis can have far-reaching and long-lasting consequences.

For companies and brands, the key takeaway is clear: Crisis PR in 2025 requires not just fast action, but also transparency, empathy and accountability. When an organization is confronted with a crisis, it must acknowledge the problem quickly, take full responsibility and offer clear solutions. Transparency is crucial, especially in today’s environment, where social media can amplify every mistake.

By learning from these high-profile PR failures, companies can better navigate the complexities of modern public relations and avoid the costly pitfalls that can damage their reputation for years to come.

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Ronn Torossian is a Public Relations entrepreneur.