Fashion Law 2026

Navigating Legal Complexity in a Transforming Industry

The global fashion industry occupies a central position in the contemporary creative economy. From the exclusivity of haute couture to readily available fast fashion, the sector generates trillions of dollars in annual revenue and shapes consumer behaviours, cultural values and markets worldwide. This economic significance is matched by a dynamic legal landscape that is evolving to deal with the unprecedented complexity for fashion companies of intellectual property disputes, sustainability mandates, data protection obligations, AI regulations, and cross-border compliance requirements.

It is in this context that fashion law has consolidated itself as a distinct and essential legal discipline. What began as a structured response to legal conflicts affecting the industry has evolved into a strategic practice area, offering instruments to protect intellectual property rights, preserve brand integrity, guide contractual and advertising practices, ensure regulatory compliance, and address challenges posed by new technologies. More than a specialised practice, fashion law now represents a critical pillar for businesses in the industry seeking to differentiate, grow sustainably and preserve their identity in an increasingly competitive and dynamic market.

The following overview highlights key legal themes in this scenario, drawing together common trends and challenges across jurisdictions. The purpose is to offer readers a practical framework for understanding the legal issues most likely to shape the fashion and luxury industry in the years ahead.

Intellectual property: the foundation of fashion protection

Intellectual property remains the cornerstone of legal protection in the fashion industry. Creativity and originality lie at the heart of fashion, and ensuring that creative works are recognised and protected by law is essential to the viability of authorial brands. Worldwide, fashion companies rely on an integrated intellectual property portfolio that includes trade marks, copyrights, industrial designs, patents and trade dress to safeguard their identity, differentiate their products and defend against unauthorised copying. The protection of distinctive elements is, however, far from straightforward and demands careful case-by-case evaluation.

The trade mark system has become increasingly important in the fashion industry for protecting distinctive elements on clothing, accessories, footwear and perfumes, and has evolved well beyond traditional word and figurative marks to encompass a wide spectrum of non-traditional signs. Three-dimensional and position marks, for example, safeguard the shape of products or the precise placement of elements such as stripes, logos or stitching, enabling fashion brands to build a strong and recognisable visual identity while deterring imitation. At the same time, jurisdictions are increasingly recognising additional categories particularly relevant to fashion, including colour marks (such as signature shades used on soles or in packaging), pattern marks (repeat prints and monograms), and motion or multimedia marks, used in digital fashion and online retail environments. Sound marks are also gaining relevance in branding across physical and virtual stores.

More innovative still are olfactory (smell) marks, which aim to protect distinctive scents associated with perfumes, retail spaces, or even garments, although their registration remains limited due to challenges in precise representation and consistency. Other emerging forms include texture or tactile marks, which are highly pertinent in a sector where fabric and material feel are central, alongside hologram and other immersive marks tied to technological developments such as virtual fashion and the metaverse. Collectively, these expanded forms of protection reflect the fashion industry’s shift towards multi-sensory and experiential branding, allowing companies to secure not only visual but also sensory and experiential aspects of their identity in an increasingly competitive and innovation-driven market.

The protection of fashion creations under copyright law remains a subject of considerable divergence between legal systems. Civil law countries tend to offer broader protection for creative works, while common law jurisdictions have historically relied more heavily on freedom of contract and market-driven solutions. Even within a single jurisdiction, the boundaries between permissible inspiration and actionable copying are often unclear and remain subject to judicial interpretation on a case-by-case basis. This divergence has direct practical consequences for brands operating across borders, making multi-jurisdictional legal advice essential.

Piracy and the proliferation of dupes

Originality, authenticity and symbolic value are essential foundations of the fashion and luxury industry. The significant growth of the second-hand luxury market reflects rising demand for high-end items, largely driven by influencer culture and the aspiration to access luxury at more affordable price points. This same dynamic, however, has fuelled opportunistic practices: alongside traditional piracy, companies now face the proliferation of “dupes”, which are products that evoke the aesthetics or status of originals without directly copying them. Unlike counterfeits, dupes are not necessarily illegal, yet they raise important questions about the limits of intellectual property protection. This trend has been amplified by the rise of e-commerce, social media and the culture of micro-influencers, who promote products with aesthetics similar to the originals, often framing this as democratising access to fashion.

Brands must adopt a proactive stance, combining judicial enforcement through actions for cessation and damages with administrative measures such as customs seizures and co-operation programmes, and strategic partnerships with e-commerce platforms and marketplaces to implement notice-and-takedown policies. Institutional alliances with inspection agencies, sectoral entities and intellectual property protection associations also enhance the effectiveness of enforcement strategies. In the digital environment, AI and machine-learning tools are increasingly being deployed to detect suspicious patterns and identify infringing advertisements rapidly.

Advertising, image rights and the influencer economy

In the fashion industry, advertising extends far beyond the mere promotion of products: it shapes narratives, influences consumer behaviour, and reinforces the identity and desirability of brands on a global scale. Collaborations with influencers, models, celebrities and public figures have become central to the commercial strategies of fashion and luxury companies, particularly in an increasingly digital and image-driven market. The growing sophistication of these partnerships has intensified the legal, regulatory and reputational risks associated with advertising practices. The commercial use of image rights therefore requires careful contractual regulation, including clear provisions regarding scope of use, territories, media channels, exclusivity obligations, and limitations relating to digital manipulation, AI or deepfake technologies.

Across jurisdictions, regulators and self-regulatory bodies have adopted a more interventionist approach towards advertising transparency and consumer protection. In the United States, New York State has enacted legislation, requiring advertisers to disclose the use of “synthetic performers” (AI-generated fictional human personas) in visual or audiovisual advertising. In Brazil, the National Council for Advertising Self-Regulation (CONAR) actively enforces principles of transparency, advertising identification and consumer protection, including specific guidelines for digital influencer advertising requiring clear disclosure of commercial partnerships. In the United Kingdom, the Advertising Standards Authority (ASA), in collaboration with the Competition and Markets Authority (CMA), recently updated its guidance on influencer advertising, reinforcing stricter disclosure obligations for sponsored content, gifted products, affiliate links, and other forms of commercial relationships between creators and brands. Meanwhile, the European Union’s Green Claims Directive, expected to take effect from September 2026, significantly increases scrutiny over environmental claims by prohibiting vague expressions such as “eco-friendly” unless supported by proper independent verification. Collectively, these developments reflect a broader global regulatory trend towards greater transparency, accountability and consumer protection in fashion advertising and digital brand communications.

Artificial intelligence: creativity meets regulation

Artificial intelligence is rapidly reshaping the fashion industry, becoming increasingly integrated into creative, operational and strategic decision-making processes. From trend forecasting and personalised marketing to automated design tools and AI-generated content, technological innovation is transforming how fashion and luxury brands create, communicate and interact with consumers. This accelerated digitalisation has intensified legal, ethical and regulatory concerns relating to authorship, ownership, transparency, data protection and the commercial use of creative assets generated or assisted by AI. As fashion companies expand across jurisdictions, they must navigate a fragmented and evolving regulatory landscape, balancing innovation with legal certainty and reputational protection.

The treatment of copyright protection for AI-generated works illustrates the lack of international harmonisation on the subject. In January 2025, the United States Copyright Office reaffirmed that purely AI-generated works do not qualify for copyright protection, though AI-assisted creations involving substantial human creative contribution may be eligible. In the EU, the Artificial Intelligence Act, which entered into force in August 2024, introduced transparency obligations applicable to AI systems used in creative and commercial contexts. Italy has complemented the EU framework through Law No 132/2025, reaffirming that copyright protection requires human intellectual creation, and establishing specific text and data mining exceptions for AI training purposes. In Brazil, although comprehensive AI legislation has not yet been enacted, several legislative proposals remain under discussion, while existing frameworks such as the General Data Protection Law (LGPD) already impose relevant obligations on companies adopting AI technologies.

For fashion companies, the adoption of AI across design, marketing, retail and operations continues to accelerate, requiring brands to develop robust governance and compliance frameworks capable of addressing regulatory compliance, intellectual property risks, data protection obligations, and algorithmic bias mitigation. Contractual arrangements with technology providers require careful regulation of issues such as training data provenance, permitted commercial uses, confidentiality, cybersecurity standards, and liability allocation for intellectual property infringement. As AI becomes further embedded into the fashion value chain, disciplined governance and proactive legal risk management are likely to become essential components of long-term commercial strategy.

Sustainability and ESG: from aspiration to obligation

Sustainability has evolved from a purely reputational concern into a central regulatory, commercial and strategic issue for the fashion industry. Governments, regulators, investors and consumers are placing increasing pressure on fashion companies to adopt more transparent, traceable and environmentally responsible business practices. As concerns relating to climate change, resource consumption, labour conditions and circularity continue to shape political and economic agendas worldwide, sustainability obligations are becoming progressively embedded into the legal and operational structure of the industry. The EU has emerged as a key driver of this regulatory transformation. The revised Waste Framework Directive, adopted in 2025, introduced mandatory Extended Producer Responsibility schemes for textiles, footwear and accessories, shifting end-of-life management responsibility directly onto producers. In parallel, the Ecodesign for Sustainable Products Regulation, which takes effect in 2026, prohibits the destruction of unsold clothing, footwear and accessories within the EU.

The Corporate Sustainability Due Diligence Directive requires large companies to identify and mitigate human rights and environmental risks throughout their supply chains, while the Corporate Sustainability Reporting Directive establishes mandatory sustainability reporting obligations. Although the EU’s Omnibus I Simplification Package, approved in late 2025, narrowed the scope and postponed certain compliance deadlines, the broader regulatory direction remains clear: sustainability compliance is becoming a structural requirement for fashion companies. At the national level, jurisdictions such as France and Italy have proposed additional measures targeting ultra-fast fashion, including enhanced eco-modulated fees and restrictions on advertising practices associated with high-volume, low-cost production models.

Alongside these regulatory developments, scrutiny over environmental marketing claims continues to intensify globally. The communication of sustainability initiatives requires careful legal assessment, as misleading or unsubstantiated claims may expose companies to allegations of greenwashing, regulatory investigations, consumer litigation, and reputational damage. In response, companies are strengthening internal governance and compliance programmes, adopting stricter review procedures for environmental advertising and aligning disclosure practices with internationally recognised frameworks such as the Global Reporting Initiative (GRI) and the Task Force on Climate-related Financial Disclosures (TCFD). In an industry where brand perception and consumer trust remain fundamental commercial assets, sustainability compliance is no longer solely a regulatory obligation, but an essential component of long-term corporate resilience and value creation.

Data protection in the fashion ecosystem

In the fashion and luxury sector, where personalisation, consumer experience and brand positioning are key competitive differentiators, the ethical and lawful use of personal data has evolved from a mere regulatory requirement into a strategic business pillar. Fashion companies routinely process significant volumes of personal data throughout the customer journey. Such processing extends far beyond basic identification data, encompassing virtually every touchpoint of the omnichannel consumer experience, including behavioural data, geolocation, consumption preferences, browsing history and data collected through cookies and similar tracking technologies. The rise of virtual influencers, facial recognition technologies in stores, smart mirrors and digital avatars creates additional challenges involving biometric data, image rights and consumer consent.

Cybersecurity incidents in 2025 involving major global fashion houses have demonstrated that even the most established luxury brands remain highly vulnerable to cyber-threats, with potential for significant financial losses and regulatory exposure. Legal exposure extends beyond compliance with local privacy laws and frequently involves complex international regulatory frameworks, such as the EU General Data Protection Regulation (GDPR), the LGPD in Brazil and the California Consumer Privacy Act (CCPA), particularly given the industry’s extensive reliance on cross-border data transfers. Accordingly, in an industry where brand value is intrinsically linked to consumer trust and reputation, data protection is no longer merely a legal safeguard, but a key component of market differentiation and long-term institutional sustainability.

Conclusion: law as strategic infrastructure

The fashion industry is undergoing a profound transformation driven by technology, globalisation, sustainability demands and shifting consumer expectations. What was once perceived as a sector primarily centred on creativity and aesthetics now operates within a sophisticated legal and regulatory environment, where intellectual property, data protection, advertising compliance, ESG obligations, AI and cross-border operations intersect daily. In this context, legal challenges are no longer isolated issues to be addressed only when disputes arise, but rather structural elements that directly influence brand value, reputation, consumer trust and long-term business viability. The fashion lawyer’s role has evolved accordingly, moving from transaction facilitator to strategic adviser, compliance officer and, progressively, a participant in broader questions of corporate governance and social responsibility.

This guide aims to equip practitioners, brands, institutions and investors with the jurisdiction-specific knowledge they need to navigate that environment with confidence and precision. Whether dealing with the protection of a trade mark portfolio, structuring an influencer partnership, managing an AI governance framework, implementing sustainability compliance, or expanding into new markets, the chapters that follow offer practical, expert guidance from leading practitioners worldwide. As the industry continues to evolve at a rapid pace, the ability to anticipate risks, navigate regulatory complexity and support innovation responsibly will become a key factor in distinguishing resilient and globally competitive brands.