Understanding Apparel Manufacturing:
The ApparelMagic Guide - Regulatory Section
The first thing that we’re going to cover in regards to apparel manufacturing is laws and regulations. This section is going to be fairly information-dense and will cover the regulatory agencies that exist in apparel manufacturing, current laws that apply to clothing manufacturing and retail in the United States, as well as some key global laws. In addition, information and resources to help you find regulations in countries we haven’t discussed will be included at the bottom of this section.
The Current Regulatory State Of Apparel Manufacturing
Apparel manufacturing, just like any other industry, is subject to regulations. Historically speaking though, regulation in clothing manufacturing has left a lot to be desired. Even though that may be the case, it is important to understand the laws, regulations, and outlined best practices that are in place and how they impact your business. That is what we will explore in this section. There are various laws that must be followed in every country that dictate how manufacturers should run, how clothing should be labeled, and more. However, the glaring problem in apparel manufacturing is that there is no one agency that oversees manufacturers on a global scale and enforces broad regulations to the entire industry. Fashion is unique in that sense and the lack of an overarching regulatory body can make the industry complex to navigate. With that said, there are two organizations that have put forth global guidelines when it comes to apparel manufacturing. Participation in these organizations is voluntary but both of them have outlined best practices for manufacturers. We’re going to explore both of them before talking about individual laws and regulations by country. First, there is the Sustainable Apparel Coalition (SAC) that was formed in 2009. The goal of the coalition is to establish a worldwide framework for sustainable clothing production. The focus of the SAC is on reducing the environmental harm of apparel and textiles manufacturing while simultaneously enriching the communities where these factories operate. They have over 250 members around the world, including manufacturing facilities, brands, and retailers. Their primary contribution to apparel manufacturing regulation is the Higg Index. It is a tool that members can use to measure their sustainability throughout their supply chain. Secondly, there is the Organisation for Economic Co-operation and Development (OECD). This organization was originally established in 1961; however, the global guidance standards that they publish were set forth in 2017. There are 36 countries in total that are members of this organization. The guidance standards that they put forth are a collection of best practices and requirements that dictate how active members approach the situations of child labor, forced labor, wages, and more. You may want to look at these organizations as a standard when it comes to searching for a manufacturer that fits your needs. As you read before, participation in these organizations is completely voluntary and the guidelines they set are in no way legally binding; however, they are the closest you can get to a global regulatory agency in manufacturing. Aligning yourself with manufacturers that follow these guidelines will help put you on track to regulatory compliance in the future, whenever it arrives.Why Do Regulations Matter?
Even though there is a distinct lack of broad regulations in the clothing manufacturing space, we don’t want you to think that regulations are not important. There are several laws and country-specific agencies that set forth regulations that you have to follow. The American Apparel and Footwear Association, Canadian Apparel Federation, and the Office of Textiles and Apparel, International Trade Administration are the primary players in North America but you’ll find regulatory bodies and law offices like this all around the globe. Regulations are important because they help make sure that manufacturers and even clothing retailers are operating safely with the best interest of everyone in mind. Even with the regulations that we do have, we’ve seen many cases of manufacturers falling short significantly. There have been multiple cases of large retail chains and so-called “fast fashion” companies having their production contracted out to factories that use child labor; there are also cases of glaring safety issues in some factories. Safety and integrity can be more effectively upheld with regulations. Regulations also help ensure that there are standards of quality being met in these factories, which ensures that your buyers get what they expect and pay fair prices. Between the innovations in technology and the increasing demand for affordable, quality clothing that is on-trend, fashion is an incredibly dynamic industry and will likely see a lot of changes in the next decade. Making sure that you are operating in line with the regulations that exist will help you pave the way for the future of your business regardless of what changes may come. Failing to follow regulations and laws, or failing to be aware of what your manufacturers are doing, can destroy the credibility of your company in an instant. Also, there are also hefty financial penalties for falling short of the law. Regulations help keep industries like fashion safe, profitable, and forward-moving. Operating in line with those regulations is key. Even in countries that you don’t operate in, it is important to follow the law so you can continue doing business there. If you’re operating out the United States but selling to Europe, you are required to adhere to Europe’s regulations as well. If you don’t, you could be disallowed to sell your apparel there, or face fines or legal action.Apparel Regulations In The United States
There may not be any overarching regulatory agencies in the fashion industry; however, there are still a lot of laws that you will need to make sure that you follow if you choose to operate a clothing business out of the United States or plan to sell your products there. The laws that we’re going to explore relate specifically to clothing and textile manufacturing, labeling, and lab testing. In order to be able to sell any clothing in the United States, the garments must be compliant with all of the following laws.California Proposition 65
This law applies to more than just clothing; in fact, it applies to all consumer products. However, that does include clothing. California Proposition 65, often shortened to just Cali Prop 65, states that any business that has more than 10 employees must label their products if they contain any chemicals that the state has found to be potentially cancerous or those that could cause reproductive harm. This is a California state law but it is one that must be followed if you intend to sell any of your clothing in the state. Putting this warning on the clothing doesn’t necessarily mean that you’ve violated any safety standards or that your products are dangerous. Instead, it seeks to inform Californians about any potential toxins that could be in their clothes and the potential risks associated with them. Things like lead and phthalates are used in textiles and clothing manufacturing in some places, both of which are regulated by Cali Prop 65. In light of that, you must make sure that these warnings are printed for your customers, typically on the clothing label. Penalties for not following this law can cost up to $2,500 per day, per violation for the company. To learn more about the chemicals that are covered, you can check out this resource.Flammable Fabrics Act
The Flammable Fabrics Act, typically referred to as the FFA, is an act that was created to regulate products that can be highly flammable. This applies to many different types of products like carpets, mattresses, and, of course, clothing. Hats, gloves, and footwear are exempt from this act but any other type of clothing, especially children’s clothing, must meet the requirements of this law. The FFA was originally passed in 1953 and applies to clothing that is sold or manufactured in the United States. To ensure compliance with this act, there are certain tests for flammability that need to be conducted to ensure that the garments meet the applicable standards. These tests are not typically conducted by the retailer; however, retailers are responsible for ensuring that those standards are met. The sale, and even the manufacturing, of any items that do not meet the standards is prohibited. One key thing that retailers can do is file a Guaranty with the Consumer Product Safety Commission. A Guaranty is described as a “good faith declaration” that your products conform to the standards. You can check with manufacturers that they adhere to FFA standards and then file all of that information with the CPSC. This protects you in the event that your manufacturer falls short because it states that, to your knowledge, the FFA standards were met by the manufacturer for your products.Federal Hazardous Substances Act
This act is similar to Cali Prop 65 in that it was created to regulate the use of potentially hazardous materials in consumer goods. The FHSA was originally passed in 1960. Most people tend to associate this act with hazardous household chemicals such as cleaning products, but it also applies to the textiles industry. Some chemicals, such as formaldehyde, have been historically used in apparel manufacturing to help reduce the flammability of a piece of clothing or to make them more resistant to wrinkles. This is one of the key substances regulated under this act. In order to maintain compliance with the FHSA, all clothing that uses restricted substances must be adequately labeled in order to inform consumers of the substance and how to protect themselves from any hazards related to its presence. This act is something to keep in mind when creating the labels for your items.Consumer Product Safety Improvement Act
The Consumer Product Safety Improvement Act, generally just called the CPSIA, is an act that was passed in 2008. It specifically regulates products intended for children. Any consumer product that is designed for use by those under the age of 12, including clothing, is regulated by this act. If you’re producing clothing that is for children, you must make sure that all of the standards for children’s products are met. This includes product safety rules that relate to flammability and labeling. This act states that regulated products must include some key information on its labels, such as:- The name of the manufacturer or private labeler (like a brand name)
- The location and date of production
- Information related to the manufacturing process
- Any additional information related to the source of the product
ASTM Clothing Standards
The ASTM, or American Society for Testing and Materials, is an international standards organization that provides a variety of standards and rules on the testing and use of materials. In terms of textiles, there are two main standards that they have published that were incorporated into law. The first of these is the Active Standard ASTM F1816, which includes safety specifications for drawstrings on children’s jackets and outerwear. This sets forth guidelines to help reduce the risk of strangulation and other hazards associated with drawstrings. The second is the Active Standard ASTM D5489. This is officially known as the Standard Guide for Care Symbols for Care Instructions on Textile Products and this is the one that is most likely to affect your business. This is the law that dictates what each care symbol means and how it is to be used when it comes to labeling your items. These rules are enforced by the United States Federal Trade Commission and failing to comply with them can result in steep fines. Manufacturers and importers of apparel are subject to these rules on any type of clothing except for shoes, gloves, hats, belts, suspenders, and neckties. Labels must contain information about proper care for the garment, how to ensure no harm comes to the garment during care (such as “do not iron”), and must guarantee that proper care will not lead to any damage.US Textiles Labeling
When it comes to selling clothing in the United States, labeling is one of the most important things that you will need to consider. You are responsible for creating the labels on your clothing, so this is one of the regulations that is more in your control than any of the others. All of the laws that relate to labeling clothing are enforced by both the Federal Trade Commission as well as US Customs and Border Patrol. There are three major laws that dictate what goes on clothing labels. These include the Textile Fiber Products Identification Act, the Wool Products Labeling Act, and the Fur Products Labeling Act. However, some of the other regulations that we have already covered also play a role in how clothing must be labeled to make sure that you’re following all of the laws. In addition to the things we’ve already covered, in regards to warnings about potential hazards, there are several other things that you must keep in mind when it comes to labeling your clothing to make sure that you’re following the law. Here is a quick summary of what rules you need to follow when labeling your clothing:- Labels must be placed in a conspicuous and accessible spot
- The country of origin must be present and clearly displayed
- It is unlawful to lie or try to be deceptive about the country of origin
- The country of origin label may not be covered by any other label
- Clothing labels must display the fiber content of the garment
- The manufacturer or dealer identity must be on the label
- Care instructions using the symbols and guidelines from the ASTM must be present
- If a size is displayed, it must meet the current ASTM standards
- All labels must be printed in English
- Any other labeling regulations that include your garment must be met
Clothing Lab Testing
There are different requirements in regards to lab testing for each regulatory act or law. For instance, Cali Prop 65 does not include any requirements for lab testing even though you’re required to report on the presence of certain substances. The same is true of the FHSA. However, in cases like those two acts, and especially the FFA, lab testing is one of the only ways to ensure compliance. Even if it is not specifically outlined as a requirement, most sources consider lab testing to be a “best practice” that you should follow to ensure that everything is compliant with the existing regulations and properly labeled according to the lab results. Additional information about all of the United States laws and regulations in the apparel industry, including resources related to lab testing, can be found here.Apparel Regulations Around The World
Regardless of where your clothing is manufactured, it is important to remember that anywhere that you would like to sell your clothing is going to have laws and regulations just like the United States. Ensuring compliance with all of the existing regulations that are out there ensures that you can sell your apparel globally and won’t experience any penalties or legal barriers to expanding your business into those particular areas. Even if you do not plan to sell your clothing internationally at this time, being knowledgeable on the rules that may apply to you in the future is critical to the health and expansion of your business. In this section, we’re going to touch on some key existing regulations and give you important information on how to do thorough research to make sure that you are following all applicable laws.The European Market
When you want to sell your clothing on the European market, there are some regulations that you are required to follow. Some of them are laws that will come with fines and other penalties if they are not followed, and some of them do not have any legal implications but you’re still expected to operate your business with them in mind. There are legal requirements that revolve around safety, labeling, quality, and the use of chemicals as well as terms and conditions that are mandated by potential buyers in that market. In Europe, and around the globe, there has been a trend of increasingly strict regulations on clothing and it is predicted that the trend will continue. In order to make sure that you’re prepared to meet any requirements in the future, you need to operate in line with what already exists. The first key regulation we’re going to explore is REACH. This is an acronym for registration, evaluation, authorization, and restriction of chemicals. This is one of the most well-known legal requirements and it restricts the use of certain chemicals in textiles and leather. Some chemicals have limits that are set in weight and some are outright prohibited. This regulation applies to all chemical substances; however, it is still relevant for any clothing importer, manufacturer, or retailer that would like to do business in Europe. It went into effect in 2007 and all of the information you need can be found at this resource. In addition to REACH, some countries like Norway, Austria, Finland, Germany, and plenty of others will have their own chemical restrictions. The second important regulatory measure that you’ll need to consider in order to sell in the European Union is the General Product Safety Directive (GPSD). This is a sweeping piece of legislation that applies to a broad range of consumer goods, including apparel. This particular piece of legislation was enacted in 2002 and it was designed to ensure that European consumers don’t have to worry about unsafe products being on the market. There are several things that fall under this law, including certain restrictions on children’s clothing, labeling guidelines, and more. This comprehensive resource explores EU regulations and how to ensure compliance with them.The Chinese Market
China has a comprehensive system that regulates imported textiles, apparel, and footwear. There is a grading system that is used that has sets of technical requirements for each grade and those requirements must be met in order for a garment to be labeled within a certain grade. There are special laws that govern textiles (GB 18401-2010) and leather (GB 20400-2006); each law contains lists of requirements that must be met in order for products to be sold in China. These laws contain restrictions on chemicals like lead, cadmium, phthalates, and more. In addition, there are labeling requirements for all clothing sold in China that falls under these laws as well. Some of the labeling requirements in China include:- Labels must display the name and address of the manufacturer
- The country of origin must be clearly specified
- Product name, size, and other specifications must be included on all labels
- Fiber content must be displayed
- Labels must include care instructions
- The Product Standard Code against which the product was tested must be displayed
- The Product Quality Classification (based on the grading system) must be specified
Researching Global Apparel Regulations
As you can see, every country around the world is going to have its own set of laws that regulate apparel manufacturing, importing, and sales. When you are considering expanding your business into a new area, it is imperative to research the existing laws that your products or your company as a whole may fall under. Fashion law is a complex and diverse landscape and doing your research is extremely important. When you select a manufacturer in another country or decide to start selling your clothing there, there are a few things that you should make sure that you do in order to effectively research the existing regulations.- Ask the manufacturer directly. This may not always provide you with the results that you’re looking for; however, manufacturers have a responsibility to meet those regulations as well and they may be able to point you in the right direction.
- Check government websites for that country. Most of the laws and regulations that exist are well-documented online and government websites are a strong reliable source.
- Just Google it! It may seem simple, but a lot of the information you need is already out there and has likely been explained in detail by someone on the internet, so it’s worth looking.