France is globally recognized as a fashion industry pioneer, being the birthplace of numerous fashion houses with strong international reputations in the luxury goods market. While those houses typically specialize in haute couture and seasonal ready-to-wear collections, complete with pricey apparel and accessories, luxury fashion is beyond the financial reach of most. This has led to low-cost “fast fashion” (“mode rapide” in French) becoming extremely popular, particularly with young consumers, over the last ten years.
Fast fashion is quickly designed and produced to keep up with trends, often made with inexpensive materials and sold at low prices, suggesting that it is also made at even lower costs. The fast fashion industry (and the newer evolution of the ultra-fast fashion segment) has been subject to significant scrutiny due to: its environmental impact; the emissions involved in producing such high volumes of garments; the amount of waste that it causes (both from factories and after the clothes are discarded by the consumer); its contribution to micro-plastic marine pollution; and ethical concerns about the working conditions of garment workers.
“Fair” – or “ethical” – fashion influencers have been raising awareness about the issues hidden behind glossy campaigns in the fashion industry for years, and governments are starting to take these issues seriously. Perhaps unsurprisingly given its reputation in the fashion industry, France is one of the first countries to consider penalizing fast fashion brands. Earlier this year, its Assemblée Nationale approved a bill that aims to reduce the environmental impact of fast fashion. In furtherance of the legislation, the government plans to charge what could be described as an environmental levy on low-cost garments (rising to €10 per garment or 50 percent of the recommended retail price by 2030) and banning advertising for cheap textiles.
Polyester, acrylic, and nylon are among the cheapest synthetic textiles, which are often high in microplastics, and those microplastics shed from the clothing when garments are washed, making them a significant contributor to water pollution. These textiles are some of the most popular used by fast fashion brands because they are relatively low-cost to produce. Synthetic fabrics have a substantial carbon footprint, with one polyester t-shirt reportedly generating the equivalent of 5.5kg of carbon dioxide. Therefore, the French fast fashion Bill could also help the country achieve its net-zero target by 2050.
With net-zero targets looming over the United Kingdom and Europe, we might see similar restrictions proposed by British and other European governments over the next few years.
It is envisaged that the costs created by such legislation will be passed on to the end consumer, which will be inevitable for some low-cost garments, but this could have the unintended consequence of squeezing prices down in the supply chain so that retailers can continue to keep the cost to customers as low as possible. There is, as a result, a risk that these changes result in worse conditions and lower pay for garment workers, which governments and companies effecting change because of the evolving legislative landscape should seriously consider from a welfare and reputational perspective.
Kathleen Talbot, the Chief Sustainability Officer at sustainable fashion favorite Reformation, has previously said that regulation of fast fashion could be the only way to manage the issue, so itis likely to be applauded by some stakeholders.
However, those affected by the change, including international retailers and e-tailers operating in France, should: (2) Seek legal advice on the impact of legislative change on their business; (2) analyze their approach carefully before implementing any changes; and (3) devise a strategy to manage any risks identified to reduce the likelihood of disputes and reputational damage arising in future.
Carly Duckett is a Senior Solicitor on Shepherd and Wedderburn LLP‘s commercial disputes team based in Edinburgh and has acted for clients throughout the UK across a variety of sectors, including hospitality and leisure, sports, finance and retail.
