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Fashion and Retail Law is a new specialization in law that advises all legal entities and individuals working in the fashion, textile, luxury and retail sectors. In this sense, it is important to analyze the keys to the development of this branch of law in our country and what tasks are facing the development of this area.
Chain protection
The Fashion and Retail Act provides legal support to everyone involved in the chain, from the conceptualization of the design (designers and creatives) to the suppliers of raw materials, such as cotton farming companies or communities that sell alpaca fibers, they produce threads, fasteners, buttons, right up to textile companies that produce products on behalf of other brands or develop their own own, as well as subcontracted textile companies.
When a company has an end product, it contracts with distributors and marketers, whether they are malls or retailers that sell the products in the retail market. This is divided into several categories, from mini-retail, through department stores, to fast fashion and luxury brands. The product is then promoted by sponsoring or hiring models, influencers and brand ambassadors for advertising campaigns through placement services. Parades and fairs are also organized to launch the collections.
Thus, the chain extends from the conceptualization of the product to its arrival at the customer’s home. If the business is profitable, it can even expand to achieve a national and international reach. For this, it is possible to use various methods of financing or conclude agreements on licensing of the brand or franchise, which consist of the transfer of know-how, replication of the mentioned successful business model.
Products in this category cover not only clothing, but also shoes, jewelry, cosmetics, and perfumery (known as beauty business or beauty law). It also covers accessories such as purses, wallets, hats, glasses or cards, and decorating trends in terms of colors and textures. That is, there is a wide range of categories framed under the word fashion, the target audience of which is divided into women, men, children and babies. These categories also belong to a wide range of offerings and styles, from sporty or casual to elegant and formal.
Support in other areas of law
As explained earlier, due to the lack of a single standard, fashion and retail law is filled with different branches of law, making it even more complex and difficult to master.
In Peru alone, more than 60 regulations of various specialties are used to implement fashion and retail legislation through areas such as corporate law (incorporation of fashion start-ups, venture capital to attract capital and accelerate the development of fashion retailers, lease and usufruct agreements with shopping centers and new retail formats such as pop-up stores), environmental (environmental roadmap and standards for the disposal of solid and electrical waste) and intellectual property (brand registration, copyright registration as a work) artistic, whether it is the creation of a shoe heel, jewelry such as the Tous bear, and material innovation patents).
Fashion and retail law also draws on other specialties such as employment law (various forms of contract, compliance with anti-sexual harassment rules and policies), advertising (advertising campaign disclaimers), tax (rebates and rebate policies, damages and losses). and tax approach), foreign trade (product import and export regimes) and financial (funding conditions from Proinnóvate applications to crowdfunding and NGO donations), to name just a few examples.
Initial ideas
What happened in Peru was unprecedented. The market entry of a new specialization of law caused such interest that everyone who listened had to express their opinion about it. It was loved by some and criticized by others, as many people with ignorance and lack of awareness initially thought that there was an attempt to regulate the way they dress or that lawyers would become bloggers, which is absolutely not the case.
Through the implementation of this specialty, we strive to solve the legal problems of these industries. Some of them are very serious and even go as far as violating human rights, such as what happened during a fire at a textile company in Bangladesh in 2013, or cases of exploitation and slavery (criminal issues) related to the mining of blood diamonds. in Sierra Leone.
Working lines
Since its launch, the specialty of fashion law in Peru has registered an important evolution. In addition to all of the topics covered, fashion and retail lawyers have started to tackle their own topics that no other of these professionals in the market have covered. I mean providing legal advice on:
Sustainable fashion and its connection with corporate social responsibility, with innovations in corporate formats such as BIC Law or Bcorp companies and sustainable ownership, in addition to the presence of a wide range of international certifications such as Fair Trade, System B and GOT, among others.
The Artisans and Anti-Cultural Appropriation Act, which even includes a bill initiated by former Congresswoman Tanya Pariona.
Marketing of alpaca, vicuna and cotton fibers.
Eligibility for jewelry and obtaining certificates.
Beauty Law (olfactory brands and certificates).
New retail formats such as fashion exchanges, smart kiosks and second-hand stores.
Regulation on the labeling of clothing and products in general.
Selective and exclusive distribution, brand license and franchise agreements.
The law of proportions.
Video game use.
Blockchain, NFT, Metaverse and Artificial Intelligence in the Fashion Industry.
On August 22, 2022, seven years after its launch, the Lima Bar Association issued Resolution No. 093-2022-CAL/DCC. In it, fashion and retail law was recognized as a specialization of law. The first commission to study fashion and retail laws was also created.
The evolution of the specialty
One of the most enriching characteristics of this specialization is its constant evolution, especially in two aspects:
Sustainability. Sustainable fashion is here to stay. Even the European Union has begun to regulate this through actions such as the introduction of a digital passport for textiles that will include environmental, social and corporate governance (ESG) standards so they can enter the European market.
Use of technology. Models are replaced by avatars. In addition, it is predicted that the use of artificial intelligence will revolutionize the fashion industry in the coming months.
The main tasks
Fashion and retail laws can and should be used as a tool for the growth and development of the Peruvian economy. Therefore, I urge our authorities to comply with state policies and regulations for its development and growth.
Peru, like its gastronomy, should also be proud of the fashion it produces and sells. Unlike other countries in the region, our country is privileged to possess the finest vicuna fiber in the world, and our cotton is internationally recognized. There is also a proposal to turn Peru into a center for the marketing and export of sustainable fibers such as ceiba, punga flower or chambira and to promote sustainable fashion in the world.
There is still a lot of fabric left to cut. Informality and lack of knowledge about how to develop a business make it difficult for us to compete in the international market. There is a lot of talent in Peru, but there is an urgent need for regulation that encourages and promotes the development of this industry, which could generate and even increase income for this sector and for all Peruvians. For this reason, I try to teach the Fashion and Retail course in my country, as I would like future generations to use it positively for the development of Peru. What actions do you think are necessary to achieve these goals? Leave us your opinion.
