This study aims to examine how Malaysian consumers in Penang perceive their awareness of overclaimed food products. Specifically in the impact of three key factors: deceptive nutrition labels, lack of enforcement in advertising regulations, and unlawful advertising practices. The measurement instruments were designed within the Malaysian setting, ensuring that the selected products align with crucial dietary requirements while upkeep consumer rights. Engaging a stratified random sampling method, data was gathered from participants aged 18 to 60 and analyzed using SPSS Version 27.0. The findings reveal a distinguished relationship between consumer awareness and occurrences of overclaiming in food products, with illegal advertising identified as the most significant factor. These results offer significant insights for food and beverage companies in Malaysia, as well as regulators and policymakers, by providing recommendations on improving consumer protection and facilitating informed choices.