The rapid spread of digital technologies has produced data-driven feedback loops, wearable devices, social media networks, and mobile applications that shape user behavior, motivation, and mental well-being. While these systems encourage self-improvement and the development of healthier habits through real-time feedback, they also create psychological risks such as technostress, addiction, and loss of autonomy. The present study also aims to investigate the positive and negative psychological consequences of feedback mechanisms on users' behaviour and well-being. Employing a descriptive survey method, the study collected data from 200 purposely selected users to assess changes in behaviour, motivation, and mental well-being related to health, social, and lifestyle applications. Results indicate that while feedback mechanisms facilitate goal attainment and social interconnection through streaks and badges, among other components, they also enhance anxiety, mental weariness, and loss of productivity due to actions that are considered feedback-seeking. Furthermore, test subjects reported that their actions are unconsciously shaped by app feedback, often at the expense of personal autonomy, while real-time feedback minimally influences professional or social interactions. The study shows that data-driven feedback loops deliver not only motivational benefits but also psychological challenges. To mitigate these risks, users should establish boundaries regarding their use of technology to prevent burnout and addiction, while developers need to refine feedback mechanisms to reduce cognitive load and foster more inclusive participation. Future research should focus on designing feedback mechanisms that promote well-being without compromising individual freedom or increasing social comparison.