5 ways retailers break trust—and how data can fix it

When I became a first-time mom, my perspective on the products my family used changed completely. As a data scientist, I naturally dive deep into the details; now I was suddenly applying this rigor to ingredient and product information, turning every label into an obsessive data research project. This journey opened my eyes to a startling reality: Not all products are created equal, and there’s a profound gap between the trust we place in brands and the reality of what’s inside their products.

My personal experience mirrors a crisis facing the entire retail industry. Widespread misleading claims have eroded consumer trust, with skepticism reaching an all-time high. According to Novi’s data, up to 50% of products feature a false claim; and a staggering number of consumers would stop buying from a brand completely if they discovered one. This crisis of confidence, however, presents an opportunity to build a new infrastructure for commerce itself. One where the burden of proof shifts from the consumer to the retailer, and verifiable truth becomes a brand’s most valuable asset. By addressing the key ways they are breaking trust, retailers can fix the cracks in the system, rebuild consumer confidence, and unlock substantial avenues for growth.

Here are five of the most common ways I see brands and retailers breaking consumer trust, and how to rebuild it.

1. They allow misleading and unsubstantiated claims

The proliferation of false or unsubstantiated claims by brands has become a significant issue. Terms like “net zero,” “vegan,” or “nontoxic” are often used inaccurately. In the U.S., a comparative lack of stringent regulation has allowed this to become rampant. By allowing these products on their shelves, retailers effectively endorse these unverified claims, damaging their own credibility and forcing consumers to become skeptics to protect their families.

Retailers can remedy this by implementing robust, automated verification systems. Since regulation is lacking, the burden of proof is now on the retailer. Technology can transform this challenge into a competitive advantage by efficiently identifying and promoting products with verified attributes. My company Novi provides a platform that enables retailers like Sephora, Ulta, and Target to credibly verify claims, in some cases leading to sales increases of up to 15% in their values-based programs.

2. They rely on brand storytelling instead of proof

Pioneering brands like Patagonia and Seventh Generation built trust through compelling narratives and a direct connection with consumers. But as values-based shopping has gone mainstream, consumers are no longer satisfied with a good story; they demand third-party validation. Brands that fail to adapt to this shift from storytelling to verification risk being left behind.

Data analytics can clearly illustrate the tangible business benefits of robust values-based programs, incentivizing brands to invest in verification. For instance, Amazon reported a 10% increase in page views and a 12% rise in sales for products featuring values-based badges. Products with multiple verified claims grew almost three times more quickly than other products. Presenting this data-backed ROI is vital for encouraging brand participation.

3. They present inconsistent information across channels

Brands sometimes present conflicting information across different retailers. A product might qualify for Ulta’s Conscious Beauty program but fail to meet the standards for Sephora Clean, for example. Since modern consumers research and shop across multiple platforms, these inconsistencies undermine brand authenticity and consumer trust.

Values-based initiatives are, at their core, data projects. Retailers must integrate technology from the outset to manage and disseminate this data across all consumer touchpoints. This requires IT teams to adeptly use data to inform every stage of the customer journey, from initial product search to final validation, ensuring a consistent and trustworthy omnichannel experience.

4. They guess which values matter to their customers

Without data, retailers often take a generic approach to their values-based programs, failing to connect with what truly motivates their specific customers, who often have a diverse set of needs. This leads to underperforming programs that don’t resonate.

Retailers must go the extra mile to understand their audience deeply. Analyzing consumer search patterns and filter usage can reveal which values are most important and use these insights to shape your strategy. Data also reveals that different values matter in different categories; ingredient transparency is often most important in beauty, while sustainable packaging may be more critical in household goods.

5. They fail to make information accessible

At the heart of the trust issue is a lack of transparency. When information about how a product was made is hard to find or difficult to understand, shoppers become more skeptical of all claims. This information asymmetry puts the consumer at a disadvantage and breeds distrust.

The fundamental solution lies in making information about how a product was made transparent and easily accessible for shoppers. This democratization of data empowers both consumers and brands to make more informed and better decisions, ultimately building trust. When retailers consistently deliver products with verified claims, they foster deeper customer engagement, see improved sales conversion rates, and cultivate stronger brand loyalty.

By shifting from ambiguous claims to a foundation of verifiable data, retailers will not only rebuild consumer trust, but also unlock new, sustainable streams of revenue. The retailers and brands that thrive will be those who recognize that their greatest product is not what they sell, but the trust they can prove.

Kimberly Shenk is cofounder and CEO of Novi.