On November 18, 2022, an amendment and recommitment were entered into Consumer Protection for the Fashion Sustainability and Social Accountability Act ("The Fashion Act"). Previous actions included the bill being referred to Rules (Oct. 08, 2021) and to Consumer Protection (Jan. 05, 2022). The Supporters (including local industry leaders, union leaders, labor and justice organizations, academic institutions, advocacy organizations, and leading apparel industry brands and designers) of the Fashion Act have come together to strengthen the bill and offer even more clarity, which would ultimately increase the odds of the bill passing. Their overall goal is to comprehensively address social and environmental impacts, as well as achieve emission reductions and other supply chain improvements.
Several sections of the Fashion Act were revised. Specifications for water protection and chemical management were updated. Chemical mismanagement in the fashion industry's production is significant. Therefore, efforts to curb wastewater pollution from sites where textile mills are located are being implemented. Other updates will improve biodiversity and expand enforcement provisions. There is currently no binding and effective global accountability mechanism nor international law that holds corporations accountable for their involvement in human and environmental abuses.
Lastly, the updates to the Bill will offer more mandatory due diligence criteria and include brand liability for garment workers’ rights. Joint and several liabilities between fashion sellers and garment workers will be provided. The amendment will add labor protections, allowing garment workers to bring legal claims directly to brands for lost wages. The State of New York and the Attorney General will be tasked with developing regulations for companies to comply with. Companies found to be in noncompliance will have three months to remedy matters or face the possibility of being fined up to 2% of their annual revenue. The funds will be used to benefit the workers and the fashion community.
These provisions will provide further frameworks for the global fashion industry as well as place NYC at the forefront of corporate accountability. Although we have seen several brands and designers step up to the plate to do the right thing, brand self-regulation is not enough. Many businesses have found themselves at a competitive disadvantage, which has caused their costs to rise relatively. Thus, the absence of legislation is wreaking havoc on the planet and enlarging the enormous environmental and social footprint of the $2.5 trillion apparel industry.
Because many companies are prioritizing their bottom line, wide-reaching legislation is necessary, and lawmakers are needed to prevent loopholes and misinterpretations. Hopefully, with this Bill and others that will follow, they will present stable expectations that will guide investment decisions, as well as offer ongoing incentives to industry players for cooperation and allowing companies to make long-term strategic plans.