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INSIDE THE FASHION INDUSTRY - Future-Proofing Fashion: Essential Legislative Insights for Suppliers in 2024

Writer: Barbara SessimBarbara Sessim


Vogue’s article "What Suppliers Need to Know About Upcoming Legislation" is a great source of information for all suppliers out there. That goes without saying! BUT, since new designers and new brands are my focus, I have decided to explore the topic with a focus on YOU, my readers who want to start a fashion brand and need to keep an eye on what's new in the supply chain!


As the fashion industry evolves, so does the regulatory landscape governing it. Suppliers, often the backbone of this sector, must stay informed about new legislative initiatives to remain compliant and competitive. A recent report highlights 15 key legislative initiatives created to reshape the industry, emphasizing the need for suppliers to adapt and participate in these changes.


Key Legislative Initiatives


  1. Fashion Sustainability and Social Accountability Act (Fashion Act):

  • Region: New York, USA

  • Focus: Environmental and social impacts of fashion brands.

  • Implications: Requires brands to disclose supply chain information, reduce environmental impact, and uphold labor standards. Affects brands with over $100 million in revenue operating in New York.

  • Action: Suppliers must ensure transparency and adherence to these standards to maintain partnerships with compliant brands​ (Glossy)​.


  1. Fabric Act:

  • Region: USA (Federal)

  • Focus: Strengthening the domestic apparel industry.

  • Implications: Introduces a 30% tax credit for local production, aiming to improve working conditions and establish a national registry for garment workers.

  • Action: Suppliers in the USA should prepare for enhanced scrutiny and possible benefits from nearshoring trends​ (Glossy)​.


  1. EU Green Deal and Sustainable Products Initiative:

  • Region: European Union

  • Focus: Circularity, energy performance, and environmental sustainability of products.

  • Implications: Enforces cleaner supply chains and product life cycles. Mandates digital product passports and extends producer responsibility.

  • Action: EU suppliers must enhance sustainability practices and ensure compliance with new regulations starting in 2024​ (KPMG Law)​.


  1. French Climate Impact Labeling:

  • Region: France

  • Focus: Transparency in environmental impact.

  • Implications: Requires labels detailing the climate impact of garments sold in France by the end of 2023.

  • Action: Suppliers must provide accurate environmental data for their products​ (KPMG Law)​.


  1. German Supply Chain Due Diligence Act:

  • Region: Germany

  • Focus: Human rights and environmental protection.

  • Implications: Extends due diligence obligations to companies with over 1,000 employees starting January 2024.

  • Action: German suppliers must enhance their monitoring and reporting systems to comply with human rights and environmental standards​ (KPMG Law)​.


Why This Matters for New Fashion Brands


For those launching new fashion brands, understanding and adapting to these legislative changes is crucial. Here’s why:


  1. Compliance: Non-compliance can lead to hefty fines and legal repercussions. Ensuring your supply chain partners adhere to these new laws protects your brand from potential liabilities.


  1. Market Access: Regulations like the EU Green Deal and the Fashion Act set high standards that, if met, can enhance market access and consumer trust. Brands known for sustainable practices are increasingly preferred by consumers and retailers alike.


  1. Competitive Advantage: Brands that proactively engage with and even influence these legislative processes can position themselves as industry leaders. This proactive stance can lead to better brand reputation and customer loyalty.


  1. Sustainability Goals: Aligning with these legislative changes helps new brands meet their sustainability goals more efficiently, contributing positively to global environmental and social challenges.


The evolving legislative landscape in the fashion industry presents both challenges and opportunities for suppliers and new brands. Staying informed and compliant not only ensures smooth operations but also enhances brand reputation and market position (aka keeps you in the game while making sure you are complying with all new documentation needed). As these regulations come into effect, the fashion industry is set to become more transparent, sustainable, and accountable, benefiting all stakeholders involved.


For more detailed information on these legislative changes and their implications, refer to sources such as Glossy and KPMG-Law​ (Glossy)​​ (KPMG Law)​.



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