The digital space can deceive as much as it enlightens. In 2019, U.S. skincare brand Sunday Riley narrowly escaped a Federal Trade Commission (FTC) fine after an investigation into a whistleblower comment on Reddit found that the brand’s employees had received instructed to leave rave reviews for their products on the beauty retailer Sephora’s website, and to “dislike” negative reviews of their products in the hope that they will be removed. Such cases have raised concerns among consumers about the claims made for many beauty products.
Anxious to reassure its customers, the beauty e-merchant Cult Beauty turned in 2019 to the transparency software publisher Provenance. “We wanted to help substantiate the claims that are being made and ensure [customers] they are true, ”says Jessi Baker, Founder and CEO of Provenance. The partnership has “evidence” that buyers can review before purchasing. Point of proof keywords on web product pages include Coral Reef Safe, Cruelty Free, Supports Charity, and 100% Recycled. “These appear as an icon on a product page that says ‘cruelty-free’ or ‘clinical trials’, and when a customer clicks on them, a window pops up with the dated accreditation or certification and clear points on what this means in real terms, ”says Alexia Inge, Co-Founder and Co-CEO of Cult Beauty.
Cult Beauty has now added over 1,500 proof points across 60 different brands including REN Skincare, Becca Cosmetics and Goldfaden ®. Inge says, “This use of blockchain technology shifts the status quo from oversold and underinformation to education and empowerment.
While all proof points are stored in the blockchain ledger, making them tamper-proof and decentralized, some of the proof points require the brand to declare itself rather than be independently audited. For example, the Vegan and Cruelty-Free proof points require certification from PETA and Leaping Bunny, respectively, while Supports Biodiversity or Donates To Charity are backed by brand information that customers can read.
Saving brand claims isn’t the only benefit of blockchain. Phan said she chose Lolli as a partner because she wanted to educate her predominantly young clientele about cryptocurrency and encourage them to further explore the world of Bitcoin, while Parfums Christian Dior uses blockchain in partnership with Microsoft and Consensys to help stop counterfeiting.
Cult Beauty’s Inge reports that the “point of proof” initiative has been well received by customers. She noted a 125% increase in engagement on an Instagram post announcing the partnership. Baker adds that evidence from clinical trials, packaging, and helping local communities have the highest click-through rates.
