The role of sustainability labels in politics and business is a subject of controversial debate. Based on experiences from Germany, this chapter outlines the challenges and limitations of verified labels trying to overcome confidence problems in markets. Without significantly stronger regulatory interventions, the impact of these labels remains limited due to the overwhelming number of labels and the resulting consumer confusion, which contributes to the consumer-citizen gap. Key elements of a future-oriented labelling policy include: a limited number of preferably mandatory national labels for the main sustainability attributes; multi-level labels with a colour-coded interpretative design following the model of the Nutri-Score; scientifically validated assessment algorithms based on defined indicators; and intensive communicative support to promote awareness. However, even with improved labelling policies, the effect on consumer behaviour should not be overestimated. Sustainability labels are an important tool for creating transparency for consumers, but they are not a “silver bullet”.