QR codes gained widespread adoption amid COVID, with travel authorities using them to display vaccine info., restaurants adopting them to display menus & others using them to link to things like intake forms. Such tech is not new, of course, But in the wake of the pandemic, these 2D barcodes have gained mainstream use, making inroads into fashion/retail in a bigger way, for instance, as brands tout their usage from a product tracing/consumer engagement POV, often with the aim of promoting sustainability/ESG initiatives.
Back in 2021, for example, PANGAIA started affixing QR codes to the care labels on its wares (in conjunction with cloud-hosted digital twins) to share product-specific info. with consumers “in a fun & engaging way,” Maria Srivastava, PANGAIA’s Chief Impact & Communications Officer, said at the time. Before that, Ralph Lauren introduced QR codes to enable consumers to confirm the authenticity of their wares & access product details, as well as styling tips & product recommendations. “For Ralph Lauren, the technology offers real-time visibility to track products from the point of manufacture & improve inventory management,” RetailWire stated back in 2019. And as of now, Ralph Lauren has more than 220M units with QR codes in the market, the company’s head of product & manufacturing innovation, Jason Berns, told Axios.
Note: The authentication element seems particularly relevant in light of the lawsuit that Patagonia filed this week, accusing Nordstrom of selling counterfeit apparel with unauthorized product/care labels, as well as the enduring might of the secondary market, where authentication has consistently proven to be challenge.
While QR codes are currently being used in conjunction with traditional apparel labels, which are required by federal law in the U.S., at least some industry stakeholders, such as the National Retail Federation (“NRF”) and the American Apparel & Footwear Association (“AAFA”), are pushing for broader use of – and/or regulatory clarity when it comes to – QR code tech for labeling purposes …
– The NRF paid a fair amount of attention to the “use of QR codes or other references to web-based info. to provide additional sustainability info. for products” in its response to the Federal Trade Commission (“FTC”)’s call for comment on its impending Green Guides revisions in April. Among other things, the retail organization is calling on the FTC to “clarify that QR codes & other digital tools that enable consumers to obtain info. about the environmental attributes of products at the point of sale can be used to enhance & substantiate the environmental & broader sustainability claims on product packaging.”
– At the same time, the AAFA has been pushing for the FTC to revisit its labeling rules, stating that while “digital labeling (such as QR codes) is not prohibited by the rules, it simply was not imagined when the rules were written 50+ years ago.” As such, it wants the FTC & Congress to enable industry players to “use modern tech & tools to replace labels, making clothing information digital, [and making] more detailed information … accessible across communities, including more detail of wash & care instructions, a deeper story of what our clothes are made of & a product’s sustainability journey.”
For those opting to make use – or greater use – of QR code tech, it’s worth taking note of potential risks, including in the context of cybersecurity & data protection. “Before incorporating QR code tech into your organizational operations, you should consider the risks involved and plan accordingly,” per Brouse McDowell’s Jarman Smith. “For instance, businesses must account for increased data processing & storage, gathering consumer acknowledgments/consents & establishing appropriate cybersecurity safeguards to protect the personal information being processed.”
The Bottom Line: There is no doubt that QR code tech is a beneficial tool for many brands – from potentially reducing the bulk of clothing tags to providing consumers with the ability to gain more insight into the lifecycle (and authenticity) of their clothing. However, such opportunities should be balanced with “consent-based mechanisms for data collection, clear communication with consumers about the processing of their personal data (when relevant) & appropriate cybersecurity measures to prevent security incidents.”
– Carlos Vila v. Deadly Doll: Deadly Doll & Carlos Vila have settled the interesting lawsuit that the paparazzi photog filed against the fashion brand, accusing it of infringing a photo he took of model Irina Shayk wearing a pair of the brand’s sweatpants by posting it on Instagram w/o a license.
– Perkins v. New York Times: In a first-ever case interpreting N. Carolina’s automatic renewal statute, the court refused to dismiss claims waged against the Times over its failure to present certain subscription info. in a bold font at checkout.
– Getty v. Stability AI: Getty Images has asked London’s High Court for an injunction to prevent Stability AI from selling its AI image-generation system in Britain, per Reuters. In the suit, “Getty says Stability AI has relied on infringing its © ‘for the successful operation of its business.” Getty is seeking damages & an order requiring Stability AI to “hand over or destroy all versions of Stable Diffusion that may infringe Getty’s IP rights.”
>>> As for the latest in Getty’s stateside suit against Stability AI, you can find that here.
– LVMH Métiers d’Art has acquired a majority stake in Italian tannery Nuti Ivo S.p.A.
– ASOS has raised £75M from its three biggest shareholders. An additional £5M in new shares will be offered to smaller investors. The e-commerce retailer is also borrowing £275M from Bantry Bay Capital.
– Publicis has acquired the majority stake in Publicis Sapient AI Labs, the AI joint venture that it launched in 2020 with tech firms Elder Research & Tquila.
– Speaking of AI … Chinese tech giant Baidu is launching a $154M fund to invest in generative AI startups, while Italy is working on a state-backed initiative to fund AI startups. More about that here.
– Accenture will acquire Green Domus Desenvolvimento Sustentável LTDA, a consultancy with experience helping clients design & implement a range of sustainability services.
– ESG platforms continue to standout as key raisers (in addition to AI startups, of course) … Cur8 has raised £5.3M in a pre-Seed round. The climate tech startup “works with the best nature & tech partners to build [carbon] removals portfolios of the highest quality.”
– Funding is still flowing into the web3 space: Web3 gaming co. Fusionist has raised $6.6M in a round co-led by Binance & privacy-focused cryptocurrency wallet provider Demox Labs has raised $4.5M in a pre-seed round.