Broken trust, founder lies and corporate scandals: Business lessons from Apple Cider Vinegar

Netflix’s latest drama series, Apple Cider Vinegar, has everyone talking, and not just because of its jaw-dropping plot twists.

The show dives into the murky world of health scams and influencer deception, exposing how people can be so easily duped by slick marketing and a good sob story. But for small business owners, there’s a bigger takeaway: the critical importance of integrity and authenticity in business.

Based on the real-life Belle Gibson scandal, Apple Cider Vinegar serves as a stark warning about what happens when deception is used as a business strategy. For those who need a refresher, Gibson was the so-called wellness guru who built an empire on a lie.

Her claim to fame? She had cured her terminal cancer with a mixture of organic diet and natural therapies. The claims garnered Gibson a massive social following, and with this notoriety came accolades, an app, and even a book deal. The only problem? She never had cancer.

When the truth came out, instead of taking responsibility, Gibson doubled down, dodging questions and making excuses. (Check out this trainwreck of an interview with Sixty Minutes). Even when she was taken to court and fined for misleading consumers, she showed zero remorse. It’s a textbook case of what not to do in business.

The power of trust in business

In big or small businesses, trust is everything. Whether you’re selling organic skincare, running a café, or offering financial advice. Customers don’t just buy products; they buy into the people and values behind them. If they feel deceived, it’s game over. Once credibility is lost, it’s nearly impossible to regain.

The Apple Cider Vinegar series shines a light on how quickly people fall for compelling narratives, but it also shows how brutal the backlash can be when those stories turn out to be a lie. The internet has a long memory, and public trust, once broken, is hard to mend.

Owning your mistakes

No business is perfect. We all know mistakes happen – a product recall, a bad marketing decision, a poor customer service experience. The key is how you respond. The best businesses own their mistakes, fix the problem, and communicate honestly with their customers.

Compare Belle Gibson’s approach to a brand like Victoria’s Secret, which faced a backlash for a lack of diversity in its models during its celebrated annual runway show.

Acknowledging the mistake, the lingerie giant put its iconic catwalk show into retirement in 2018 and began a complete overhaul of the brand. Cut to 2024, and the runway show reemerged from its chrysalis with an abundance of gender, race and body types strutting the stage. Customers voted with their wallets – with Victoria’s Secret seeing a 7 per cent increase in profits in the final quarter of 2024.

In comparison, Gibson’s lack of a mea culpa resulted in the complete destruction of her brand. Consumers lost trust, and Gibson’s reputation and brand were ruined.

More lessons from the Belle Gibson scandal

Integrity and accountability go hand-in-hand with good business practice. As Gibson’s entire business was based on a lie, it was bound to eventually come unstuck. But the lesson doesn’t end here. Gibson’s story is fraught with business errors.

1. Don’t build a brand on lies:

Exaggerating your figures or your ability to deliver a product or service might seem like an easy out and could deliver you a business win. But fabricating a business on a lie can be catastrophic. Gibson’s brand was built on a teetering house of cards that focused on her personal ‘cancer journey’. And once her falsehoods were exposed it spelled the end for her business.

2. Social Proof can backfire:

The fallout from Gibson’s lie had an impact beyond her business. Dozens of influencers and businesses as big as Apple and Penguin/Random House, leveraged Gibson’s story,to boost their own bottom line. When the scandal broke, they suffered similar reputational damage for endorsing her without doing their due diligence. The lesson here: Always do your homework before hitching your wagon to someone else’s brand.

3. Transparency matters:

Consumers today demand transparency, whether it’s about sourcing, business practices, or personal backstories. If you can’t back up your claims with real evidence, don’t make them.

4. You will be held accountable (eventually)

When it comes to deception in business it’s not just an ethical issue. There are legal guard rails that protect consumers from deceptive behaviour. Gibson was taken to court and fined for her crimes, but the real punishment for the health and wellness guru was the total loss of her credibility and career.

So, what’s the takeaway for small business owners?

1. Stay authentic. Be real with your customers. Don’t exaggerate your story or make promises you can’t keep.
2. Own your mistakes. If you stuff up, own it. Be accountable. Apologise, fix it, and move forward.
3. Build long-term trust. Short-term gains from a misleading claim aren’t worth the long-term damage to your reputation.
4. Educate yourself. Be aware of the regulations around advertising and consumer protection. Misleading marketing can land you in hot water legally, not just reputationally.

We live in a sceptical world. And consumers are among the most sceptical of all.  So, honesty and integrity aren’t just ethical choices they’re smart business strategies.  When it comes to business, truth matters. And if you ever find yourself tempted to stretch the truth for a sale, just remember, the internet never forgets

This post first appeared on Kochie’s Business Builders.

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