As fashion navigates a rising tide of complex, fast-moving regulations, The Interline and SOURCING at MAGIC have partnered on a new edition of the Fashion Technology Foundations series, this time zeroing in on one of the industry’s most urgent frontiers: Regulations, Compliance, and Disclosure.
This report distills a chaotic global landscape into a clear actionable framework, providing both emerging and established fashion businesses with both a snapshot of where regulation stands today, and a roadmap to where it’s heading. From evolving legislation to the rise of Digital Product Passports, the message is clear: the era of passive compliance is over. What comes next requires proactivity, collaboration, and infrastructure that can do more than just react – and newer, more agile companies have a unique opportunity to differentiate themselves by substantiating their values.
Where previous rules asked companies to report, new regulations urge transformation. The kind baked into sourcing strategies, design decisions, and manufacturing practices. And while some companies are just getting started, others are discovering that embedding compliance into their operations can unlock resilience and even offer a competitive edge.
Most importantly, this report reframes compliance not as a burden, but as a shared opportunity. It argues that the future of fashion lies in collective alignment: interoperable systems, common standards, and smarter data strategies that span the full value chain. Compliance, in short, is no longer a solo act.
Packed with insights, stakeholder specific actions, and real-world tools for businesses of all shapes and sizes, the report is more than just a checklist – it’s a strategic handbook for an industry preparing to reinvent itself.
Read the full report here and get a quick overview of what’s inside below:
Report Summary:
- Global regulation is accelerating
Fashion businesses are under growing pressure to comply with new legislation in both the EU and the US. These laws are no longer just about reporting—they require companies to actively manage and disclose environmental and social impacts across the full value chain. - Digital Product Passports (DPPs) are becoming mandatory
Under the EU’s Ecodesign for Sustainable Products Regulation (ESPR), all textile products sold in the EU will require a DPP by 2028. These digital identifiers carry structured data on sourcing, material composition, certifications, environmental footprint, and recycling instructions—designed to support circularity and consumer transparency. - Corporate responsibility is crossing borders
The EU’s Corporate Sustainability Due Diligence Directive (CSDDD) and the SEC’s Climate-Related Disclosure Rule in the US mark a shift toward enforceable accountability. Companies must identify, mitigate, and report on human rights and climate risks, even beyond their home markets. - Stakeholder-specific guidance is essential
Compliance isn’t uniform. The report includes practical actions for brands (centralized data hubs, traceability systems), designers (sustainable material choices, modularity), sourcing teams (updated contracts, supplier audits), and manufacturers (batch-level tracking, ISO-aligned protocols). - SMEs can still lead on compliance
Smaller businesses face resource constraints, but cloud-based DPP platforms, shared supplier databases, and AI-driven classification tools are lowering the barrier to entry, helping SMEs meet requirements without needing enterprise-scale infrastructure. - Regulation is a route to resilience
When embedded into strategy, compliance can unlock operational efficiencies, improve supplier relationships, and demonstrate leadership in sustainability. Early adopters gain a competitive advantage as accountability becomes the new baseline.