Whether they know it or not, firms interact with lying consumers on a daily basis. However, surprisingly little is known about consumer lying behavior and its role in service encounters. Based on two empirical studies of 2,976 consumer lies, the study sought to explore consumer lying behavior by developing and testing a comprehensive conceptual framework encompassing motives for lying, characteristics of the lie, and outcomes for consumers. Study 1 explores and details the components of the conceptual framework, and Study 2 further investigates and tests the relationships between the components of consumer lying behavior and the emotional, behavioral, and financial outcomes for consumers. The findings suggest new policies and how frontline employees might be trained and educated to address consumer lying behavior. The paper concludes by outlining an agenda for future research on lying behavior in service encounters.