TLDR:
- What it is: The Responsible Textile Recovery Act is shaking things up in fashion. It mandates brands to be responsible for managing and financing the entire lifecycle of their products.
- Who’s affected: If you’re a fashion brand or retailer with over $1M in global revenue and you sell in California, you need to pay attention.
- Deadline: By 2030, you’ll need to hit all the recycling and reuse standards.
- How resale helps: Resale is not only great for the planet, but it can also help brands meet these new rules and drive more sales. Win-win!
ICYMI (In Case You Missed It):
California is making headlines again with its new Responsible Textile Recovery Act (SB 707), a game-changing law aimed at cutting down the massive pile of fashion waste the industry creates—about 92 million tons each year, globally. This law is part of a larger global movement to clean up fashion’s act and hold companies accountable for their environmental impact. The resale market has quickly become a bright spot in this new world, offering brands a way to comply with the law while staying profitable.
Even though the focus is on California, this law is part of a bigger worldwide push for more climate action. If your brand’s not already thinking about how to go circular, now’s the time.
So, What’s The California Responsible Textile Recovery Act All About?
At its core, this law makes fashion brands step up and take responsibility for what happens to their products after they’re sold. This happens through something called Extended Producer Responsibility (EPR), which means that brands are now in charge of what happens to their clothes—whether that’s reuse, recycling, or another end-of-life solution. Oh, and it will cost you. Companies will need to fund these efforts on their own, as it’s no longer coming out of the state’s budget.
Here’s what brands will need to do:
- Create a plan: You’ll need to figure out how to collect, transport, repair, sort, recycle, and safely handle your products at the end of their lives. This isn’t just for clothes—think shoes, handbags, swimwear, and even undergarments.
- File reports: You’ll be sending regular updates to California about how you’re managing waste, along with data on things like recycling performance, fee structures, and how you’re educating consumers.
- Pay attention to deadlines: If you’re not following the rules, expect fines of up to $50,000 a day.
The clock’s ticking, and the push for sustainable practices is only getting stronger.
Who’s Affected By This Act?
- Brands & Retailers: If you make or sell apparel in California and your company earns more than $1 million globally per year, you’re affected.
- Online Marketplaces: Sites like Amazon, Etsy, or any online platform where people can sell goods will also have to follow these rules, especially if third-party sellers are making a significant chunk of sales in the state.
- What counts as a "Covered Product?": This law includes most textile items—clothes, shoes, and bags—but leaves out stuff like protective gear, FDA-regulated items, and military uniforms.
How Can Resale Help Brands Comply?
The good news is that resale isn’t just a way to drive new revenue—it’s a practical way for brands to meet the requirements of this law. Here’s how you can use resale to your advantage:
- Start now: Brands should aim to launch a resale program by early 2026. This gives you time to get a circular model running smoothly, collect all the data you’ll need, and refine the process before the stricter regulations hit in 2030.
- Join or form a PRO: A Producer Responsibility Organization (PRO) will help you manage the product lifecycle requirements.
- Build infrastructure: Get your resale program, repair services, and recycling efforts in line by 2025 so you can join a PRO and hit the ground running.
Key dates to watch:
- 2024-2025: Time to form a plan and explore product lifecycle strategies.
- 2026: Join the PRO and start getting your data in order.
- 2030: Full compliance is mandatory. If you’re not meeting recycling and reuse standards by then, the fines will hurt ($10,000-$50,000 per day, to be exact).
What Should Brands Do Next?
First things first: Reach out to CalRecycle (the agency in charge of overseeing this law) for guidance on forming or joining a PRO in California. While there aren’t any PROs specifically for fashion yet, keep an eye on organizations like the Textile Exchange and the Ellen MacArthur Foundation—they’re at the forefront of making fashion more sustainable and could become PROs in the near future.
And if you’re not already thinking of resale, now’s your chance. A branded resale program not only helps you comply with SB 707 but also builds loyalty, opens new revenue streams, and helps position your brand as a sustainability leader. Partnering with platforms like Treet makes it easy for brands to create a resale solution that keeps products in use longer—reducing waste and making your brand part of the circular economy.
Final Thoughts:
California’s Responsible Textile Recovery Act is forcing brands to take ownership of their environmental footprint, but it’s also offering a huge opportunity to rethink how we do business. By embracing resale, brands can stay compliant, reduce waste, and build a more sustainable future. It’s a win for the planet and for your bottom line.
Quick Glossary:
- Producer Responsibility Organization (PRO): A group that helps brands manage the end-of-life stages of their products.
- Extended Producer Responsibility (EPR): A policy that shifts the cost and responsibility of product disposal from the government to the companies that make and sell the products.
Key Info to Know:
- Agency in Charge: CalRecycle (California Department of Resources Recycling and Recovery)
- Law Reference: SB 707
- Compliance Deadline: 2030
- Signed Into Law: September 28, 2024
Time to get started! Stay tuned for our webinar diving into the details of this act and how your brand can get ahead of it.
