New York Proposal for a Fashion Sustainability and Social Accountability Act or "Fashion Act"

USA

26 Jun

Governmental Agency: The New York State Senate
Jurisdiction: New York, USA
Ref no: Assembly Bill A4333 / Senate Bill S4746
Status: IN REVIEW

The Fashion Sustainability and Social Accountability Act or "Fashion Act", first introduced in 2022, is a legislative proposal aimed at promoting sustainable and ethical practices. If passed, it will establish New York as the global leader in accountability for the fashion industry, with significant impacts on businesses. Introduced by Senator Alessandra Biaggi and Assemblymember Dr. Anna R. Kelles.

The act would require disclosure of supply chain data, including environmental impact, labor practices, and animal welfare policies. A Mandatory Due Diligence framework requires companies to sufficiently identify, prevent, mitigate, account for, and remediate actual and potential adverse impacts on human rights and the environment in their operations and supply chain. They will also need to set and achieve Science Based Targets and manage their chemical usage.

The Fashion Sustainability and Social Accountability Act or ""Fashion Act"" would impact any apparel or footwear company that is:
- ""Doing business"" in New York (""Doing business"" is determined by the entity's New York state business tax return)
- has annual global revenue of $100 million
This includes companies based within New York and also those based outside of New York.
The Fashion Act would impact businesses that participate in the production and distribution of fashion products, including manufacturers, wholesalers, retailers, and importers of fashion products. The impact would likely be greater for businesses that are not already prioritizing sustainable and ethical practices.
Companies found to be out of compliance and which do not remedy within three months of notice of non-compliance may be fined up to 2% of annual revenues.
The New York State Assembly did not vote on the Fashion Act before the end of the legislative session in June, so it will have to be reintroduced next year.