Understand Extended Producer Responsibility (EPR) Legislation on U.S. Fashion Companies

• Natalie Heindel, Fashion Merchandising, University of Delaware

• Sheng Lu, Fashion and Apparel Studies, University of Delaware

Understand Extended Producer Responsibility (EPR) Legislation on U.S. Fashion Companies’ Supply Chain Strategies

Extended Producer Responsibility (EPR) legislation is emerging as a transformative factor in the U.S. fashion industry, with a growing number of states implementing or planning to adopt such measures. EPR shifts the responsibility for managing the end-of-life disposal of used clothing from consumers to manufacturers and retailers, potentially reshaping supply chain strategies for U.S. fashion companies.

This study aims to fill a significant research gap by exploring the sectoral impact of EPR legislation on U.S. fashion companies, focusing on how it affects key supply chain operations, presents sustainability opportunities and challenges, and identifies best practices for compliance.

In-depth interviews with a dozen industry professionals indicate that large-scale US fashion companies are highly aware of EPR legislation and have started trying to understand the new legal requirements and developing strategies to ensure full compliance. However, fashion companies’ responses are mostly limited to the technical level, and building a circular business model as ERP legislation requires remains a long way to go and requires substantial new investments. These initial findings enhance our understanding of the business impacts of EPR legislation and offer valuable advice to fashion companies and policymakers regarding the opportunities and challenges of implementing EPR legislation and ensuring compliance.