While nearly everyone shopped online this past holiday season, a significant trust deficit remains when it comes to how companies handle consumer information.
A recent survey by retention marketing firm Clutch reveals a striking contradiction: though 95% of consumers made online purchases during the holidays, roughly one in three don’t trust retailers to handle their personal information responsibly.
The data underscores a fundamental tension in modern retail. Shoppers have embraced the convenience of e-commerce, but they’re increasingly skeptical about what happens behind the scenes with their browsing habits, purchase history, and personal details.
Transparency is non-negotiable
The survey of 402 U.S. consumers found that transparency around data collection practices has become table stakes for earning customer trust. A staggering 98% said transparency matters when deciding which brands to trust, while 97% expect companies to maintain rigorous privacy and data protection standards.
The research also found that about half of consumers (47%) believe brands are collecting extensive information about them—tracking everything from shopping preferences to location data and online behavior patterns.
This awareness has created discomfort: 46% of respondents said they’re uneasy about sharing their data with retailers. Yet financial incentives can shift the calculus—43% indicated they’d be more willing to share information in exchange for tangible benefits like discounts, loyalty rewards, or exclusive deals.
“Consumers aren’t opposed to sharing data, but they want honesty and accountability,” noted Anna Peck, a Clutch analyst. “When transparency falls short, trust erodes quickly.”
Personalization: helpful or intrusive?
The survey also examined consumer attitudes toward personalized marketing, with mixed results. More than a third (36%) don’t find personalization tactics helpful at all. Among those who do appreciate customized experiences, the most effective approaches are shopping cart reminders, personalized product suggestions, alerts about recently viewed items, and tailored email content—each cited by about a quarter of respondents.
Artificial intelligence adds another layer of complexity. Despite AI becoming increasingly common in retail operations, 41% of consumers said they’re uncomfortable with brands using the technology for personalization purposes.
Regulations making a difference
There’s at least one bright spot in the data: privacy regulations appear to be working. More than half of consumers (58%) feel that recent privacy laws have improved how brands manage their data, suggesting regulatory frameworks are having a meaningful impact on both corporate behavior and consumer confidence.
Additionally, 56% of respondents said they’re confident that companies would actually delete their data if requested—a sign that data rights provisions are resonating with shoppers.
“Consumers are making deliberate tradeoffs,” Peck explained. “They’ll share data when the value is clear, but many are choosing privacy over convenience.”
The findings paint a picture of a retail landscape where the basic transaction has become more complicated. Shoppers want seamless online experiences, but not at the expense of their privacy. Retailers who can navigate this balance—offering genuine value in exchange for data while maintaining transparency—will likely have an edge in building lasting customer relationships.
The survey was conducted in December 2025, capturing consumer sentiment during one of retail’s busiest periods.
