Unfortunately 'truth in advertising' is an oxymoron. Distorting reality is a lie.
It can lead to negative body image among girls and women.
Companies will use whichever marketing tactics work best to sell products. Consumers need to take more responsibility. Not only do we need to be smart enough to recognize unrealistic enhancements, but we also need to adjust our values if and when we disagree with those impossible expectations. Companies will stop using Photoshop as soon as consumers stop buying those products. in a Free Market, that is exactly how it should be.
Photoshop leads to unhealthy body standards that even the model themselves can feel insecure about if the company felt they had to change their body to make them more presentable, most models already are on strict diet and excerise to maintain their figures. Making them feel like they still haven’t succeeded is cruel.