The rapid adoption of AI-driven personalized marketing has transformed how businesses engage with consumers. While personalization enhances customer experience and business performance, it also raises critical ethical concerns related to privacy, transparency, consent, and algorithmic manipulation. This study explores these issues in the context of the Indian digital landscape by analyzing three real-world case studies involving fake dating profiles, cloned government websites, and intrusive mobile application interfaces. Through thematic interpretation and conceptual modeling, the research highlights how unethical personalization practices negatively impact consumer trust and digital well-being. The paper proposes a strategic conceptual model that integrates ethical AI design, user privacy, regulatory enforcement, and transparency as foundational elements leading to trustworthy personalization It also attempts to make a comparison metrics for ethical concern and risk in a tabulation form. The findings emphasize the urgent need for ethical frameworks and user-centric design in AI-powered marketing strategies. This study contributes to academic discourse on responsible digital marketing and lays the groundwork for future empirical validation.