The loophole legacy competitors don't want you to know

Ashlee Posner is the CEO and founder of State of Change. As she shared on our panel, it is the first and only fully transparent, validated, safer solid fragrance brand, built completely with plastic-free and sustainable packaging.

Here is how she used a massive industry loophole to build a high-growth, deeply trusted brand.

The problem with the word "fragrance"

If you look at the back of most beauty or household products, you will see the word "fragrance." It seems simple enough, but in reality, it is a legal shield.

As Ashlee explained on stage:

"When you put the word fragrance on a label, it can be 50 to 300 ingredients that are not disclosed. It is very minimally regulated."

Because of this lack of transparency, consumers started actively avoiding it. There was a huge uptick in search demand for "fragrance-free" products over the last five to eight years simply because buyers no longer trusted what they were putting on their bodies.

Building the "fragrance-free” fragrance

Instead of playing the same game, Ashlee leaned entirely into transparency. State of Change became the brand that actually listed every single ingredient out in the open.

"I have a t-shirt that says 'fragrance-free fragrance'. Because if we list out all the ingredients, I no longer have to stick that word fragrance on the label. I don't have to put fear in your eyes."

By building out a validation tool and openly listing their raw materials, they could make claims that legacy competitors legally couldn't, like definitively stating their products contain no endocrine disruptors or carcinogens.

Owning the supply chain = owning the community

This level of transparency naturally attracts a highly engaged, loyal community. But State of Change took it a step further by using that community to actually dictate their product road map.

Because they own their R&D, formulation, and manufacturing, their feedback loop is almost instant.

"We have shorter development cycles. We've done a lot more building and iterating directly from what is coming in from the community, and it's working very well."

The Takeaway

Where is the lack of trust in your specific industry?

If you can identify the "dirty secret" that legacy brands are hiding behind, you can position your brand as the radically transparent alternative.

Trust is the ultimate conversion driver.

DTC Live On Air Podcast

In this week's episode, Adil Manji and Kareem Raslan pull back the curtain on bootstrapping their home gym brand, BrainGain, from just 25 units to full shipping containers, without a penny of venture capital.

If you sell physical products, this is a must-listen. We break down:

• Why chasing top-line revenue over profit nearly broke the business.
• The Amazon vs. Shopify DTC balancing act.
• The brutal reality of supply chain bottlenecks and navigating European expansion.

Watch on YouTube

Listen on Spotify

In Other News…

• Google Retires Dynamic Search Ads (DSA): Google is officially pulling the plug on Dynamic Search Ads, forcing advertisers to shift their budgets into AI-driven Performance Max (PMax) campaigns. With the algorithm now firmly in the driver's seat, pure keyword strategy is taking a backseat to structured data and high-performing visual assets. If your account still relies heavily on older DSA structures, it's time to upgrade your creative pipeline before your performance drops.
  

• How AI is Impacting Brand Trust: As more brands deploy AI chatbots to handle customer service, shopper sentiment is shifting. Data shows that while consumers love AI for fast product discovery, using poor-quality bots as a barrier between your customer and real support actively damages brand equity. If you are rolling out AI for front-line customer service, ensure the path to a human agent is absolutely seamless.