Helping Fashion Industry Startups Meet Upcoming Legislation

The fashion industry has been largely unregulated in many areas, including sustainability and transparency. The sector is now under greater scrutiny from administrative organizations that would like to impose stricter legislation to protect workers, suppliers, and consumers and promote genuine sustainability.

Many fashion brands are accused of greenwashing, and the introduction of new laws, such as New York’s Fashion Act, all aim to improve transparency and hold businesses more accountable. 

Meeting Legislative Requirements In The Fashion Industry

For small startups in the fashion industry, meeting new requirements on top of managing all the other aspects of establishing a new enterprise can be challenging.

New businesses must source a comprehensive manufacturing service or establish a customer base through digital marketing.

Consolidating supply processes and using digital platforms can help fashion startups simplify their new business, comply with regulations and ensure customer satisfaction.

Supporting High-Quality Supply Chains

Increased traceability within fashion supply chains helps to inform customer choices and make it easier for companies to manage their risks, and yet only 48% of major fashion brands share information about their manufacturers.

To address this issue in Europe, the European Commission recently registered a new initiative that could potentially affect fashion startups. 

The ‘Good Clothes, Fair Pay’ initiative asks the Commission to implement legislation requiring businesses to take greater care in assessing and choosing companies involved in their supply chains.


Fairness and Transparency

One of the most important aspects of establishing a business in fashion is finding a reliable clothing manufacturer that can take care of all aspects of supply.

Finding a clothing manufacturer can make it easier for small fashion businesses to check for fairness and transparency. Also, at the same time, companies can procure high-quality products that will meet their clients’ demands.

Promoting and Monitoring Sustainability

Proper transparency is also important in sustainability, an increasingly desirable feature in fashion. Also, new regulations to promote greater sustainability have been proposed in both the US and Europe to improve the green credentials of fashion companies.

The New York Fashion Act

Fashion brands in New York are being held to account by the Fashion Act, a law introduced in the city at the start of the year and recently amended to ensure further sustainability in the industry.

The Act requires companies to be more transparent about their emissions, use of resources, and supply chains. These stipulations only apply to companies that generate over $100 million in revenue. Other smaller businesses are encouraged to do the same to meet consumer demand for more environmentally-friendly products.  

Digital tracing and labeling technology can help fashion startups track the origins of raw materials and sort them for eventual recycling. There is also the option to register a business on an online platform that promotes greener practices, making it easier for startups to monitor and demonstrate their own sustainability.

The Future Of The Fashion Industry

The fashion industry is under greater scrutiny, and it is hoped that new laws governing the sector will ensure greater fairness, transparency, and sustainability. 

By simplifying manufacturing processes and making good use of digital technology, fashion startups can meet their customers’ needs while at the same time ensuring they comply with the proposed legislation.


Lavanya Rathnam

Lavanya Rathnam is an experienced technology, finance, and compliance writer. She combines her keen understanding of regulatory frameworks and industry best practices with exemplary writing skills to communicate complex concepts of Governance, Risk, and Compliance (GRC) in clear and accessible language. Lavanya specializes in creating informative and engaging content that educates and empowers readers to make informed decisions. She also works with different companies in the Web 3.0, blockchain, fintech, and EV industries to assess their products’ compliance with evolving regulations and standards.

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