Regulating the Industry: A Running Tracker of Retail-Focused Legislation

Fashion operates in a space with relatively minimal regulations, particularly when compared to other industries in the United States. In the absence of stringent rules, and in the face of a growing footprint thanks to increasingly complex supply chains and rising rates of consumption, and consumers that are increasingly demanding information about the environmental, social, and governance (“ESG”) elements of companies’ operations, fashion industry entities have largely turned to self-regulation.

This has prompted an onslaught of mechanisms – from third-party certifications, such as B Corp. status, and controversial standardized measures like the Higg Index to the adoption of brand-crafted ESG-centric action plans – that are almost entirely devoid of legal consequences in the event that a company and/or its board fails to follow through. 

As for the fashion and apparel-focused regulations that do exist, they are not without drawbacks and/or loopholes. Laws that aim to ensure the safety of consumers, for instance, have been enforced with “an undercurrent of caveat emptor,” according to Melissa Gamble, an assistant professor in the Fashion Studies Department at Columbia College Chicago – or in other words, the laws make it so that “buyers are responsible for checking the quality and suitability of goods before a purchase is made.”

At the same time, federal wage and hour laws are “often rendered ineffective [at protecting garment workers] when manufacturers subcontract cut and sew work to other companies,” Gamble says, thereby enabling these brands to avoid liability by arguing that they cannot be responsible for what they – as the retailer and not the manufacturer – cannot control. 

While this has been the status quo for the industry for quite some time, change appears to be afoot. Signals are coming by way of new government initiatives and new laws that are being implemented in Europe. As part of a more extensive climate bill, France, for example, passed a law requiring a “carbon label” to be included on garments and textiles to help inform consumers about the impact of their purchases. This law follows closely on the heels of an “anti-waste” law passed in 2020 by the French government that prohibits the destruction of excess inventory and samples, among other things, Gamble notes, saying that, taken together, these developments indicate that “fashion industry regulations and the larger regulatory environment is, indeed, shifting.” 

All the while, the U.S. is seeing a rise in retail-centric legislation that is worth keeping an eye on. With that in mind, here is a running list of key domestic legislation that industry occupants should be aware of – and we will continue to track developments for each and update accordingly … 

Apr. 27, 2026: Counterfeit Notification Act (H.R. 4930)

Adopted: April 27, 2026 by voice/bipartisan support (following a 40–0 approval in the House Ways and Means Committee in Dec. 2025)

Introduced by: Blake Moore (R-UT) and Brad Schneider (D-IL)

Snapshot: Expands the authority of U.S. Customs and Border Protection (CBP) to share detailed shipment data with intellectual property owners, logistics carriers, and e-commerce platforms in order to detect and intercept counterfeit goods earlier in the supply chain.

Key Provisions: The bill authorizes CBP to disclose previously restricted information tied to suspected counterfeit shipments, including shipping labels, tracking data, sender and recipient addresses, invoices, manifests, and images of outer packaging. It also broadens the pool of recipients to include carriers (e.g., UPS, FedEx, DHL) and platforms (e.g., Amazon, Etsy), enabling coordinated enforcement. In practice, the measure allows for pattern detection—such as repeat shippers, shared “drop” addresses, or consistent routing through specific ports—shifting enforcement upstream rather than relying solely on port-of-entry seizures.

Status: Passed the House on 4/27/26; awaiting consideration in the Senate.

Feb. 9, 2026: Delegated and Implementing Acts Under Regulation (EU) 2024/1781 (Ecodesign for Sustainable Products Regulation)

Adopted: Feb. 9, 2026, by the European Commission under Regulation (EU) 2024/1781 (Ecodesign for Sustainable Products Regulation).

Snapshot: The European Commission adopted a Delegated Act and an Implementing Act to operationalize rules under the ESPR prohibiting the destruction of unsold apparel, clothing accessories, and footwear. The measures are intended to reduce textile waste and associated emissions by restricting the disposal of excess inventory and reinforcing the EU’s circular economy framework.

Key Provisions: The Delegated Act confirms the ban on the destruction of unsold apparel, clothing accessories, and footwear listed in Annex VII of the ESPR. The ban applies to large companies beginning July 19, 2026, and to medium-sized companies starting in 2030; micro and small enterprises are exempt. The Delegated Act also clarifies limited derogations, including destruction for safety reasons or where products are damaged. National authorities are responsible for enforcement. Separately, Article 24 of the ESPR requires companies to disclose information on unsold consumer products discarded as waste. That disclosure obligation has applied to large companies since July 19, 2025, and will extend to medium-sized companies in 2030. The Implementing Act adopted on Feb. 9, 2026 establishes a standardized format for such disclosures, applicable from February 2027.

Potential Implications: The measures transform the destruction of excess stock from a reputational and ESG issue into a formal compliance matter under EU product law. Fashion and footwear companies placing products on the EU market will need to reassess inventory planning, returns management, and resale, donation, or reuse strategies to mitigate regulatory and enforcement risk.

Sept. 9, 2025: European Union – Waste Framework Directive

Adopted: Sept. 9, 2025, by European Parliament

Snapshot: Introduces 2030 EU food waste reduction targets and mandates 2028 textile EPR schemes; progress toward circularity but weaker than earlier proposals and criticized as a missed climate alignment opportunity.

Key Provisions: Food Waste: 30% per capita reduction by 2030 for retail, restaurants, food services, and households; 10% reduction for manufacturing/processing sector; textiles: Mandatory EPR schemes by mid-2028; no binding EU-wide targets yet for collection, reuse, or recycling; implementation: 30-month transposition period; Member States may introduce producer fees tied to business practices.

Status: Adopted; subject to review under 2026 Circular Economy Act.

May 5, 2025: New Jersey – PFAS in Consumer Products Including Apparel (A5600)

Introduced: May 5, 2025 to Assembly by Asm. David Bailey, Jr. and Asm. Verlina Reynolds-Jackson

Snapshot: Broad PFAS bill restricting sale/distribution of products – including apparel and “outdoor apparel for severe wet conditions” – with intentionally added PFAS on phased timelines.

Key Provisions: Defines “apparel”; bans/conditions PFAS content across categories; labeling/disclosure rules; staggered effective dates; enforcement under Title 13.

Status: Referred to Assembly Consumer Affairs; pending.

Mar. 4, 2025: Closing the De Minimis Loophole Act (H.R. 1840 / S. 1867)

Introduced: H.R. 1840 on Mar. 4, 2025 to House by Rep. Linda T. Sánchez; S. 1867 on May 22, 2025 to Senate by Sens. Sheldon Whitehouse and Lindsey Graham

Snapshot: Phases out de minimis tariff treatment under the Tariff Act of 1930; high relevance to direct-to-consumer fast-fashion imports.

Key Provisions: Ends or phases out 19 U.S.C. §1321(a)(2)(C) treatment; directs CBP rulemaking and data/process upgrades to enforce; aims to curb illicit goods and level the playing field.

Status: Pending in House Ways & Means and Senate Finance. Note: CBP is already enforcing an administration action ending duty-free de minimis as of Aug. 29, 2025.

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