One of the most effective ways that the Watchtower organization can control it's members is through their discussions on demons.
Basically, any information (science, archeology, psychology) that does not agree with the assertions and teachings of the Watchtower Society can be labeled "teachings of demons". This is a tactic that the Society does indeed employ with great success. Convention talks routinely use the term "teachings of demons" when discussing topics of psychology and spirituality in the modern world. It is especially used to dismiss the arguments that are raised by former members or critics.
For example, if anyone attempts to point out the Society's flawed interpretations of Scripture; the mere attempt to uncover such inaccuracies can be attributed to demonic influence. If anyone attempts to question the Watchtower's centralized authority structure (ecclesiastical council), or it's climate of legalism, the mere attempt to question can be attributed to Satan and the demons.
Satan and the demons are in a sense used as a mental barrier by the Society to prevent it's members from engaging in the natural human process of critical thinking and deliberative questioning. When it comes to considering any Scriptural teaching, there is always that "forbiden territory" where the Witness dares not to venture into. They believe that once they begin to ask serious questions about what they are being taught; that Satan and the demons have a grip on them. When any organization can instill this kind of fear into it's members, they have enormous power over them.
The Bible does indeed describe Satan as someone who transforms himself into an "angel of light". But, it is also important to note that Satan always uses methods in direct oposition of those of God (lies, falsehood, violence, and lack of love).
If one looks at the Scriptures in their proper context, they will see that Satan's "angel of light" appearance would mislead people; not by imitating God, but by behavior directly opposite to God. When we look at the way in which people like Hitler and Osama Bin Laden have been able to mislead millions of people by appearing to be "saviors", we can see the truth in such verses. But when the Watchtower Society tries to attribute Satanic and demonic powers to anything that doesn't agree with them (namely other Christian churches, and groups), they are guilty of twisting the Scriptures to suit their own purposes. It is a trick that many other Bible cults have used, with great effectiveness.
There is a great book entitled "Churches That Abuse" by Ronald Enroth. Enroth uncovers the tactics that Bible cults use to control their members. One of the most effective methods is to instill a morbid fear of Satan and the demons - making members believe that they inhabit all influences outside of the group.