The Fashion Act Explained: A New Era of Accountability for the Fashion Industry
May 8, 2025
3
min reading
How comfortable would you feel if the social and climate impacts of your brand were public? Would you change anything—or stay exactly the same?
While there’s no one-size-fits-all answer, and the reality is often complex, one thing is clear: if the fashion industry could do one thing better to accelerate sustainability, it would be this: be more transparent. Or better yet, fully transparent.
Fashion has always been an industry of contradictions. On one end, it’s visible, expressive, mainstream, and aspirational. But on the other, it’s silent, obscure, and hidden behind supply chains few can trace.
Some activists and experts have been calling this out for years. We Still Don’t Have Enough Transparency In Fashion is a 2022 British Vogue article that highlights how, despite transparency becoming a buzzword, leading brands still failed to make meaningful progress.
Three years later, that statement still holds. Fashion Revolution Week 2025 (April 22–27) focused on localized action—but also doubled down on transparency.
As the movement stated, “governments worldwide backslide on legislation aimed at protecting the environment and garment workers' rights. Global brands are also silently deprioritizing their sustainability goals and fossil fuel divestment.”
That’s why collective citizen action and industry accountability matter now more than ever. And movements like The Fashion Act are turning that accountability into real action, transforming transparency from a buzzword into enforceable policy. By embedding these measures into legislation, the Act ensures that transparency is a practice that’s implemented and monitored.
The lack of progress in recent years has made one thing clear: in today’s fashion landscape, true change only happens when it’s backed by law.
“Specific interest in sustainability initiatives within the fashion industry over the last ten years have not resulted in measurable progress, in fact indicators have only become work.” - The Fashion Act
But what is The Fashion Act?
What do they stand for and why are they emerging as one of the most impactful initiatives driving sustainability in the U.S. fashion industry? You’ve probably heard of the Act, but this movement carries a deep, homegrown narrative that deserves attention.
So, keep reading to dive in.
Breaking Down the NY Fashion Act: Accountability in Action
The New York Fashion Act is a trailblazing bill first introduced during the 2022 New York legislative session by State Senator Alessandra Biaggi and Assembly member Dr. Anna Kelles.
Its goal is to tackle environmental damage and labor abuses throughout the fashion industry’s global supply chains.
Remember when we asked at the beginning of this article how comfortable you’d be if your brand’s social and climate impacts were made public? That’s precisely what the Fashion Act is working to enforce. Here are some of the key issues the bill addresses:
1. Mandate Supply Chain Transparency
Many fashion companies lack visibility into where their products are made, making accountability and improvements impossible. The Fashion Act requires brands to map and disclose their full supply chain, including raw material sources, as a foundational step.
2. Require Accountability Through Mandatory Due Diligence
Once supply chains are disclosed, companies must address their negative impacts under a legally binding Mandatory Due Diligence Framework. This includes identifying, preventing, mitigating, and remediating harm to human rights and the environment.
Key provisions:
Climate Action: Companies must set and meet science-based emissions targets aligned with the Paris Agreement.
Chemical Management: Brands are required to collaborate with suppliers to regulate chemical use and prevent pollution.
Garment Worker Protections: With due diligence, wage transparency, legal enforcement, and worker rights to seek compensation, the Act aims to significantly improve conditions for garment workers.
3. Strong Regulation and Enforcement
The New York Department of State will set compliance rules, enforced by the Attorney General. Non-compliant companies have three months to correct violations or face fines of up to 2% of annual revenue, which will fund worker and environmental initiatives. Brands will also be liable for unpaid wages in their supply chains—establishing a new standard for corporate responsibility in fashion.
Under the Fashion Act, brands must make their environmental disclosures publicly available on their websites. Added to that, the New York State Attorney General will issue an annual report spotlighting non-compliant companies.
Those who fail to meet the requirements could face a fine of 2% of their annual revenue.
It’s also worth noting which brands the Act applies to: companies doing business in with annual global revenues of $100 million or more. That means while the Act targets major players, its ripple effects are likely to shape expectations across the entire industry—including smaller brands working with the same suppliers or competing for the same market.
Though it began in New York, the Fashion Act has quickly gained international recognition as a model for holding the fashion industry accountable. It’s been spotlighted by major media outlets as a potential turning point for sustainability in fashion.
Photo: https://www.instagram.com/p/CYcdW5Bv2NA/utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA==
I want to support the efforts to push major apparel and footwear brands to do what is needed to bring fashion in line with what climate science is saying: We must stop polluting the environment, cutting down forests, despoiling our oceans and creating forever waste.
- Quote by Jane Fonda, highlighted in @nsifashion2030
From NYC to California
The Fashion Act’s influence already expanded beyond NYC: in California, a similar bill—AB405—has entered the legislative conversation, signaling growing momentum for enforceable change across state lines.
As a matter of fact, the California Fashion Act has recently passed through both the Assembly’s Committee on Environmental Safety and Toxic Materials and the Natural Resources Committee.
Image: Official legislative Instagram account for Chair, Budget Subcommittee on Health - CA Assembly member Dawn Addis
What does that mean?
The Committee on Environmental Safety and Toxic Materials checks if the bill protects the environment and public health, and The Natural Resources Committee focuses on elements like sustainability and conservation.
Passing these committees shows that state lawmakers see this bill as valuable and are taking steps to move it forward. It’s one step closer to becoming an actual law in California.
California voices—from activists to celebrities—have been rallying behind the progress of the California Fashion Act. Model and actress Amber Valletta, one of the Act’s ambassadors, captured its urgency in a recent Instagram post:
"Fashion has the power to be a responsible player in climate-positive action to support communities and allow us to express ourselves. Let’s get this bill passed so we can protect the health of our state and create ripple effects around the world."
It’s worth pointing out that expanding the Fashion Act to California confirms its status as a state-level bill—not a federal one.
According to the Fashion Act organization, this was a strategic decision, driven by the reality that meaningful federal progress on fashion’s environmental and labor issues remains unlikely in today’s politically divided climate.
By pursuing state legislation, the movement follows a proven model. Both New York and California are now using local policy to push for systemic change in fashion.
And while these are state-based efforts, their reach extends far beyond local borders. Maxine Bédat, one of the key figures behind the Fashion Act and founder of the New Standard Institute, has emphasized that the legislation carries global weight—setting new expectations for brands operating internationally
What the Act Means for Brands: Transparency Won’t Be a Choice Anymore
The Fashion Act will push brands into a new era of accountability. One where sustainability reports can’t just live in internal decks or vague marketing language.
As mentioned, brands will be legally required to publicly report their environmental impact, including carbon emissions, water usage, and waste output. For brands, this will mean building the infrastructure, partnerships, and systems to not only track impact, but to prove it.
Here’s what that means in practice:
1. Environmental Data Collection Will Become Core to Operations
If your brand isn't already tracking emissions, water use, and waste throughout the supply chain, it’s time to start. That includes upstream suppliers—like fabric mills and dye houses—and even logistics partners. Manual tracking won’t cut it anymore. Brands will need to implement digital tools or platforms that enable data sharing, material traceability, and lifecycle analysis across tiers.
2. Supply Chain Mapping Will No Longer Be Optional
The Fashion Act requires transparency down to raw material sourcing. That means identifying where your cotton is grown, where your yarns are spun, and under what conditions your textiles are finished. Many suppliers still operate without digital system, so brands will need to either support them through onboarding or switch to verified suppliers already aligned with these requirements.
3. Public Disclosure Means Public Accountability
The environmental data collected won't stay in-house. It must be shared publicly in standardized formats. This means anything inaccurate, incomplete, or inflated can be challenged by regulators, consumers, and civil society. Brands that fail to comply may face not only penalties, but reputational risk.
4. Strong Supplier Relationships Will Be a Competitive Advantage
Since much of this data depends on supplier cooperation, brands that have already built strong, transparent relationships with their suppliers will have an edge. Others may need to re-evaluate their sourcing partners—or look for platforms like World Collective that connect them with verified, impact-driven suppliers prepared to meet these new standards.
Need help preparing your supply chain for transparency? We’ve got you covered. Explore these World Collective articles for more:
Signs It’s Time to Rethink Your Fashion Supply Chain Partner
Should You Join the Clean Fashion Movement? Here's What SME Brands Need to Know
How to Maximize Visibility as a Sustainable Textile Supplier
Why Transparency Is Key to Fashion Brands—And How to Ensure It in Your Supply Chain
Power In Unity: Movements, Woman-led & Student Voices
At its core, the Fashion Act is a policy-driven effort shaped by those most affected by fashion’s hidden costs. It's being propelled forward by a coalition of women, students, and advocates calling for systemic change and industry accountability.
Naturally, the movement is proudly women-led, reflecting the reality that women make up the majority of garment workers globally—and therefore bear a lot of the brunt of labor abuses across supply chains.
During a online conversation, actress and Fashion Act ambassador Bailey Bass highlighted why this leadership matters:
This is a women-led coalition, which I think is so empowering. It’s amazing to be in a room with all of us, fighting for something so important and that can have so much impact.
From Maxine Bédat to ambassadors like Aditi Mayer, Sophia Kianni, Heidi Kaluza, Amanda Lee McCarty, Sophia Li, and more, this initiative is shaped by a powerful coalition of women changemakers who understand both the urgency and nuance of the work.
Beyond being backed by policy leaders and industry stakeholders, The Fashion Act also partners with education forces like Berkeley College to engage the next generation of fashion professionals.
This year, students from Berkeley’s Fashion Degree Program took that commitment to heart. In preparation for the New York Fashion Act Day of Advocacy that took place last May 6th, they created handcrafted flower adornments made from deadstock fabric designed to be worn as a visual symbol of solidarity during the advocacy day at the New York State Capitol in Albany.
These adornments were proudly paired with Fashion Act pins donated by our team at World Collective.
And this is just one of many moments. The Act has consistently brought together movements and fashion professionals alike, proving that change in fashion doesn’t happen in silos—it happens in coalition.
Photo: @nsifashion2030, showcasing the 2022 Rally and Lobby Day in Albany.
Images courtesy of @nsifashion2030, showcasing the 2022 Rally and Lobby Day in Albany.
At World Collective, we believe legislative action is key to transforming fashion’s supply chains—and the Fashion Act is a vital step toward that future. It aligns with our mission to build a sourcing-first ecosystem grounded in verified impact, transparency, and accountability.
We proudly advocate for this movement and encourage our community of brands, suppliers, and changemakers to do the same.
To dive deeper into the bill’s details, read the official Fashion Act Fact Sheet or visit thefashionact.org.
Want to take action? Join as a supporter and explore ready-to-use social media assets to help spread the word. Because real change starts when we stand—and speak—together.
