The report was requested by Senate Finance Committee chair Ron Wyden and ranking member Mike Crapo in a letter written to the CBP last month.

While the senators believe that with effective policies in place AI could help detect anomalies in customs documents and physical screening at the US border, they also added that without controls, the use of AI could raise problems.

In a statement, Wyden explained: “As is frequently the case with new technology, AI provides us with exciting opportunities to better serve the American people, but we’re beginning to see the consequences of leaving these systems unchecked.”

CBP has been asked to provide the senators with information on how AI is already being used to enforce and facilitate trade, including in small package screening, forced labour law compliance and identification of fraud in customs entries.

The senators have also requested information on how AI tools are tested and audited and whether notice of AI use is provided to importers and exporters and whether they are able to challenge decisions made by AI.

GlobalData’s patent analytics data suggests a number of apparel companies have filed AI patents related to supply chains, logistics and sourcing, which suggests that this is an area of interest for the apparel sector.

Patents filed by apparel companies related to both AI and supply chains

In 2017, patent activity in the topic seemed to peak, with 21 patents filed by apparel companies on AI and supply chains. In 2020, a total of 19 patents were filed on the subject. This year, a further 15 patents have been filed on the topic so far.

Earlier this year, experts suggested that increasing legal and consumer demand on fashion companies may soon mean that AI is essential to help avoid import detentions, penalties and reputational harm.

In November, a panel discussion at the Digital Fashion Summit revealed how AI and digitalisation can reshape traditional fashion supply chains and offer a pathway to sustainability and accountability in 2024.

Our signals coverage is powered by GlobalData’s Thematic Engine, which tags millions of data items across six alternative datasets — patents, jobs, deals, company filings, social media mentions and news — to themes, sectors and companies. These signals enhance our predictive capabilities, helping us to identify the most disruptive threats across each of the sectors we cover and the companies best placed to succeed.

Express Inc, which owns Express, Bonobos and UpWest, says it made savings of $30m in Q3 2023, and has made $80m worth of savings in 2023 overall.

The retailer says reductions to its marketing and store labour costs helped deliver this, as well as a reduction in total staff at its corporate office, which took place in August. The retailer aims to deliver $200m in annualised savings by 2025.

Alongside these savings, Express Inc says it is “aggressively pursuing” at least $50m in gross margin expansion opportunities by using efficiencies in its sourcing, production and supply chain.

Express Inc also reported a 5% increase in net sales, despite a fall in net sales at the company's Express and UpWest retail brands.

Express Inc’s CEO Stewart Glendinning said: “During the past three months, I have had the opportunity to assess our operating capabilities, organisational structure and processes, marketing and customer acquisition abilities, and merchandise and product strategies.

"Express has the right building blocks in place with a strong portfolio of brands, a high-potential partnership with WHP and a premier omnichannel platform. Our efforts to unlock our full potential and improve our performance are already underway."

Key results for Express Inc in Q3 2023

• Consolidated net sales increased 5% to $454.1m, up from $434.1m in Q3 2022
• Gross margin of 24.1% of net sales, down from 27.8% of net sales in Q2 2022
• $28.7m operating loss, down from an operating loss of $29.5m in Q3 2022.

In a call with investors as the results were announced, Glendinning said: “While there’s more work to be done to improve year-over-year sales results, there were several positive indicators in the quarter.”

Glendinning added that sales of womenswear were improving, which he attributed to a shift in the company’s merchandising strategy, although store traffic was “weaker than expected”. He added that ecommerce sales were also driving improvements in womenswear.

At Express Inc’s Express and UpWest retail brands, net sales decreased 7% to $402m, down from $434.1m in Q3 2022. While retail sales were 4% down overall, a decrease in store sales of 16% was partially offset by a 10% increase in online sales.

Net sales at menswear retail brand Bonobos, which Express Inc acquired in April 2023, totalled $52.1m, which Glendinning told investors “exceeded our expectations”.  He added: “The addition of Bonobos has allowed us to leverage our back office and is creating increased purchase leverage with suppliers.”

Glendinning added: “While Express has broad market reach and penetration, Bonobos with annual revenues in excess of $200m has a tremendous opportunity for increased awareness and household penetration to build on its existing scale. The combination of in-store fitting and online fulfilment has created strong customer retention and repeat purchase, and we expect to continue to grow the topline.”

Looking ahead, Express Inc says it expects to add $25m to net sales in Q4 2023 and an operating margin of negative mid-single digits. Glendinning told investors that the company also expects to see a further $40m of savings in Q4, as well as a “meaningful reduction” in inventory during 2024.

Chico’s FAS reported a net income of $5m in Q3 2023, down from $24.6m in Q3 2022. However, it says it has seen “consistent profitability” and has a “solid balance sheet” ahead of its expected merger with Sycamore Partners.

Private equity firm Sycamore Partners is currently in the process of acquiring Chico’s, in a deal that will see the retailer become privately owned. The deal is expected to complete in the first quarter of 2024.

Due to the merger, Chico’s FAS said it would not be providing a financial outlook for the future and withdrew its guidance for fiscal 2023.

At the time the deal was announced, chair of Chico’s board, Kevin Mansell, said: “The agreement with Sycamore Partners validates Chico’s FAS’s leadership as a customer-led, product-obsessed, digital-first company with a strong record of operational excellence.

“The transaction reflects the Board’s commitment to maximising shareholder value. It provides Chico’s FAS shareholders with significant immediate cash value and creates exciting opportunities for employees of the company and our brands.”

Key results for Chico’s FAS in Q3 2023

• $505.1m in net sales, down from $518.3m in Q3 2022
• $196.4m gross profit, down from $207.4m in Q3 2022
• Operating income fell to $10.5m from $31.6m
• Net income of $5m, or $0.04 per diluted share, down from $24.6m or $0.20 per diluted share in Q3 2022.

Chico’s FAS’ CEO and president Molly Langenstein said the quarter was in line with the company’s outlook. She added: “Our results reflect our team's continued execution on our four strategic pillars of customer led, product obsessed, digital first, and operationally excellent."

Chico’s FAS said the year-on-year decline in sales was primarily caused by a 2.7% decrease in comparable sales, as the overall number of transactions declined. It said this was partially offset by higher-than-average dollar sales.

Chico’s FAS reported a gross margin of 38.9%, which it said was at the high end of its outlook. The retailer closed Q3 2023 with $127m in cash and marketable securities.

Ahead of its merger with Sycamore Partners, Chico’s FAS reported costs of $7.3m associated with the transaction.

Langenstein added: “We are excited about the next chapter in our Company's future with the pending acquisition by Sycamore Partners. We believe they will provide Chico's FAS with additional expertise, financial resources, and strategic flexibility to further fuel our growth. Our commitment to providing solutions, building communities, and creating memorable experiences to bring women confidence and joy is shared by Sycamore Partners. We look forward to working with them to unlock Chico's FAS's full potential."

Sycamore Partners has made 23 acquisitions across several sectors, with at least four acquisitions in apparel brands and retail chains, according to tracxn.com.

Shortly after the deal was announced, industry onlookers commented that the acquisition “made sense” and could help fuel the retailer's growth.

Insights provided by SCDP's new location register, which has been unveiled in time for COP28, will show where suppliers are upholding environmental and social standards, allowing organisations to make better decisions.

SCDP's partnership claims that being able to monitor global assets will assist with reducing emissions, identifying biodiversity loss and understanding the environmental impact of supply chains.

Location insights can be used to verify assets, including farms, sites and facilities, with follow-up monitoring over time. Data and certificates associated with each asset owner will be stored in the register, allowing for buyers and investors to make better decisions about procurement.

In September, Just Style reported that traceability had become a key theme in apparel company filings, as digital product passports gain traction and supply chains strive to become more transparent.

Ordnance Survey’s strategic market lead Donna Lyndsay commented: “Demonstrating the value of this register and getting it to a proof of concept has been a major milestone. We can now demonstrate how location data and technology can help sustainability initiatives succeed by providing accuracy when it comes to monitoring, analysing, and modelling solutions - getting us one step closer to a sustainable and prosperous future.

SCDP, which was founded at last year’s COP27, aims to provide location insights. In the past year, the platform has focussed on tracking the supply chains of products including wood-based packaging, soy and palm-oil.

Lyndsay added: “Linking with the connected supply chain and entity experts GS1 UK [a not-for-profit association that maintains standards for barcodes and RFID tags] and GLIEF [Global Legal Entity Identifier Foundation], now provides us with the global reach this initiative needs to grow at pace. We are now keen to hear from any businesses who are interested in how the register can support their environmental and sustainability goals.”

Other founding members of the SCDP include Unilever, Estri UK, Deloitte and Planet Labs.

The partnership has a longer-term aim of making the information available through its platform available to consumers, allowing them to make better-informed choices.

SCDP's news comes as Just Style reported the apparel sector's failure to engage with suppliers on sustainable plans is hindering the 1.5°C target ahead of COP28.

Don’t miss our coverage of COP28! Subscribe here for exclusive insights & analysis.

The new stores will open in Turin, Livorno, Cosenza, Salerno and Genoa and will be the first Primark outlets in Italy with self-service checkouts.

Associated British Foods-owned Primark has been operating in Italy for the last eight years and employs 4,500 people across its existing 15 stores and regional office in Milan. The retailer says the expansion will create 600 new jobs across the country.

In a statement, Primark Italy’s director Luca Ciuffreda said: “I am often asked why Primark is so popular in Italy. I think the answer is very simple: Italian shoppers love Primark’s offering of the latest trends and everyday essentials at affordable prices. Our affordability means that everyone can take part in the fun of fashion.”

In its most recent sustainability report, Primark announced that 55% of clothing sold at its stores this year contained ‘recycled or more sustainably sourced materials’, up from 45% in 2022. It claims to have sold 3 million units of circular clothing.

Primark has previously committed to transition 100% of its clothes to its Primark Cares label by 2030, while keeping its same great value pricing, a move applauded by industry onlookers.

Ciuffreda added: “Opening new stores across Italy is about more than just another store. It is about creating employment in local communities. It is about growing our business and reaching more customers. It is about bringing more sustainable fashion at affordable prices to even more customers in Italy.”

After focusing on in-store sales, Primark launched a Click + Collect offer for the first time in 2022, offering the service to UK customers at 57 of its stores. The offer was recently expanded to include womenswear – its most popular category – in September 2023.

ABF, which also operates large grocery, ingredients, and agriculture businesses, noted that while the conditions are still challenging for consumers, it has observed a reduction in inflationary pressures over the past year.

UK news publication The Guardian reported the coat was ordered online in Regatta’s Black Friday sale. The customer claimed the ID card was found inside the sleeve, after they felt something inside the lining and cut it open.

The ID card featured a photograph of a man, who is said to be wearing a prison uniform in front of a height chart. It also features the man's name and the name of a prison in China.

The customer, who wished to remain anonymous, told The Guardian that when she raised the issue with Regatta they told her the ID card was not from a prison and it was instead a work ID issued by the brand’s manufacturers in China.

The customer claims that initially Regatta told her to dispose of the ID, before contacting her later to request she return the ID and coat to them. The company also allegedly offered to replace the coat.

However, Regatta told the newspaper it denied offering a new coat in exchange for the ID card.

Regatta denies forced prison labour allegations

In an official statement Regatta told Just Style it has taken the incident reported by a customer very seriously and an immediate investigation commenced.

The statement explained: "As a business and members of the Ethical Trading Initiative, we have strict policies in place to ensure ethical working standards for all, and zero tolerance for forced or prison labour. Following a thorough investigation, we can state that this garment was made in a fully compliant factory and that numerous inspections of the factory, including a certified third-party visit to the site, found no breaches of any of our policies."

Regatta pointed out that its investigation has found credible evidence that suggests this is an isolated incident by an employee who had spent time in prison before his employment with the factory.

The statement continued: "Our investigation showed no indicators that prison labour were present in the factory at any time.

"From the limited images shared by the customer it is perceived that the ID is dated 2022. Regatta Ltd. has payroll documentation to show the person pictured on the ID was an employee who received a wage. The individual had an employment contract with the factory and was not working under forced or prison conditions. The employee shown on the ID was employed by the factory from March 2023 – June 2023. The garment in question was produced during the individual’s employment and shipped from the factory in July 2023 (one month after the individual’s employment ceased)."

Regatta added that it is continuing to investigate how the item came to be sewn into the garment and it continues to work closely with suppliers to maintain high standards: "If it is found that any policies have been breached by our supply chain at any time, we will take strong and swift action". 

The outdoor brand has taken advice from the Ethical Trading Initiative (ETI) in relation to this matter and pointed out that ETI is supporting the company in its ongoing commitment to ethical trading practices.  

ETI to work with Regatta on any 'needed action' following forced labour claims

ETI is a UK-based organisation working to end the abuse of human rights at work, including forced labour and its executive director Peter McAllister shared that "Regatta has been an active member of ETI since 2012 and fully understands its responsibilities with respect to workers in its supply chain".

Regatta has held “achiever level” status at the organisation since 2017 and was recognised as “one of the top performing companies” within ETI membership in 2019.

Regatta's 2023 modern slavery statement on its website states it has a “zero-tolerance approach to modern slavery of any kind” and "we are committed to ensuring that no slavery or human trafficking exists in our business or in our wider supply chain".

It also reads: “We expect each and every person touched by our brands and products to have a positive experience.... this includes the sewing workers in our partner factories, our colleagues across the globe, and our customers.”

A spokesperson from ETI told Just Style exclusively that Regatta “had alerted the organisation about the allegations" and Regatta had undertaken “the steps it would expect” in investigating the allegations.

The spokesperson continued: “We expect all ETI company members to map their supply chains and conduct human rights due diligence on salient risks - for China, forced labour is a significant one. Despite this, we make clear that even enhanced human rights due diligence faces significant limitations in the country, and it remains difficult to guarantee the absence of Uyghur exploitation and state-imposed forced labour from supply chains based there. Similarly, audits in China are very unlikely to pick up these issues and can put auditor and company staff at serious risk in attempts to expose them.”

McAllister added: “We know that Regatta takes this allegation seriously and we will work with them to ensure the situation is clear and any needed action is taken.”

Clean Clothes Campaign urges Regatta to disclose full supply chain

Johnson, Ching-Yin Yeung, urgent appeal coordinator (structure & strategy) at Clean Clothes Campaign's International Office, told Just Style exclusively: "Regatta's disappointing investigation has shown their auditing and third party certification is no more than a window dressing. Regatta needs to stop using prison labour and comply with UK's anti-modern slavery legal regime, starting with disclosing their whole supply chain immediately."

He also pointed out The Guardian article mentioned Regatta's disclosure shows the coat was made in Myanmar and stated: "This has once again shown the importance of having a robust transparency regime across brand's whole supply chain, which most of the brands are only monitoring or disclosing their facilities responsible in the finishing phase. Since 2020, the Chinese government has been blocking reliable export information, which makes scrutiny over supply chains increasingly difficult."

He added: "It is unclear whether or not the prisoner reported in The Guardian story was a political prisoner, nor we have a clear idea of their whereabouts. It would be good if The Guardian revealed the location of the prison written on the ID, but understandably this information is obscured to prevent reprisal against the prisoner in question."

PVH reported strong digital sales, alongside lower freight costs and lower inventory levels, as it shows signs of progress in Q3. Although, analysts noted that weakness in the fashion conglomerate's home market in the US has slowed the group's recovery.

PVH’s CEO Stefan Larsson commented: “We expanded gross margin, improved inventory productivity and increased our marketing investments, driving strong consumer engagement and overall, significantly improved profitability. We continue to see incredible strength in our iconic brands as we tap into their beloved DNA and build them into the most desirable lifestyle brands in the world.”

In the quarter, PVH also completed the sale of its three intimate brands - Warner, Olga and True&Co - to Basic Resources, which analysts at the time described as a "positive" move for PVH.

PVH said the $160m sale had a potential earn out of up to $10m, based on calendar year 2024 net sales of a portion of the sold business.

Digital retail is becoming a focus for PVH, as it increased 13% in Q3 2023, compared to the same period in 2022. PVH said this was due to growth in the company’s owned and operated digital commerce revenue. The group also saw growth in digital sales at other retailers. Digital sales accounted for 20% of the group’s total revenue.

GlobalData's apparel analyst Alice Price explained: "PVH’s turnaround strategy continues to show signs of success, with improvements to its product offering and marketing campaigns allowing it to report growth for a fourth consecutive quarter, with total revenue in Q3 FY2023/24 increasing by 3.6% to $2.4bn."

Key results for PVH in Q3 2023

• Revenue increased 4% to $2.36bn
• Direct-to-consumer revenue increased 8% compared to the prior year period, or 6% on a constant currency basis
• North America revenue at Tommy Hilfiger increased 6%, while revenue declined 1% at Calvin Klein.

PVH said that lower freight costs, as well as a “favourable shift in region and channel mix” had helped increase margins, although this was partially offset by higher product costs. Overall, gross margins were 56.7% in Q3 2023, compared to 55.9% in the same period last year.

Inventory levels also declined by 19%, in line with expectations, as it aims for a 25% reduction in inventory as a percentage of sales.

Price added: “Calvin Klein experienced the greatest uplift in sales in the quarter, with revenue rising 5.8% to $1.0bn, predominantly driven by its international business, which in constant currency revenue grew by 6.1%, compared to a decline of 1.3% in North America."

Price said that, while the economic climate will have partially caused Calvin Klein's slowdown in PVH's home market, she noted that competitors including Hugo Boss have continued to report stronger results in the US. She suggested the problem could stem from Calvin Klein’s offering.

Price also noted that PVH's Tommy Hilfiger had a better quarter, with modest growth of 3.7%, a slight decrease on the previous quarter when revenue grew 5.6%. She added: "In contrast to Calvin Klein, Tommy Hilfiger had stronger year-on-year growth in North America of 6.2%, compared to a constant currency increase of just 2.6% internationally, though this is largely due to its home market still having a greater recovery to make, as it remains 15.0% down on Q3 FY2019/20."

The development comes after PVH said revenue growth for Q2 was driven by growth in its Tommy Hilfiger and Calvin Klein businesses.

GlobalData's Price added: "Despite the business’ Q3 YTD sales being up 3.2%, PVH now expects Q4 to decline by 3% to 4%, partially due to the divestment of its Heritage Brands intimate apparel division, coupled with the challenging economic climate. This has led it to lower its full-year revenue outlook to a growth of just 1%, compared to a previously projected increase of 3% to 4%. This means that it now has an even longer way to go before it regains its former status in the market, with revenue still tracking 8.7% below pre-pandemic levels."

What next for PVH?

Zac Coughlin, PVH's chief financial officer, commented: “Through the PVH+ Plan, we are relentlessly focused on delivering strong profitability, significant cash flow and attractive returns for our shareholders, while pursuing sustained, long-term growth in a choppy macroenvironment.”

GlobalData's Price added: “Going forward, PVH must continue to enhance brand desirability to secure its recovery. In November 2023, it revealed Damson Idris as its newest Tommy Hilfiger menswear ambassador.

"As the star of the hotly anticipated yet untitled Formula 1 film, the partnership will enable the brand to capitalise on the growing popularity of the sport. It also announced it will be the official sponsor of the film, with the Tommy Hilfiger flag being featured on the cars and drivers’ kits, enabling it to boost brand awareness and visibility.”

Products recycled through the scheme will be used by Rab’s recycling partner Minardi, which cleans and processes the down in Italy. Other components, including trims and fabric fibres will be saved from landfill in the process and repurposed.

Rab customers will also be able to use a collection point at sports trade fair ISPO Munich to drop off their down-based items for recycling.

As well as down apparel, such as coats and jackets, Rab will accept sleeping bags, pillows and duvets made using the natural fibre, although the company says it will only accept end-of-life items in this way. Some of the recycled fibres will be used in Rab’s own recycled products.

Rab’s recycling scheme has been running in the UK since May 2021. Consumers can recycle by either posting the items or dropping them off at the company’s Derbyshire, UK HQ or at outdoor festivals, film events and trade shows.

By the end of 2022, Rab claims the scheme had collected a total of 54kg of down for repurposing. Rab expects this total to increase by 200kg by the end of 2023.

Rabs' owner Equip Outdoor Technologies launched its Material Facts programme last year (2022), aiming to providing consumers with a clear and simple industry-wide standard for communicating sustainability credentials to help them make informed choices.

Consumers can simply scan a QR code, now supplied on all Rab apparel, to get detailed sustainability information on each product.

By the end of 2024, Equip plans to extend the scheme to all Rab and Lowe Alpine packs, equipment and accessories. Equip says that more Material Facts tables, and other criteria will also be added in the future.

In its 2023 sustainability report, Equip reported that it continued to increase the percentage of recycled fabrics it purchased to 66% in 2022 from 63% in 2021 and 46% in 2020.

Campaign group Greenpeace placed the items, tagged with tracking devices, at 11 containers located on public roads and in Zara and Mango stores across different areas in Spain between July and August. The items donated were used but still in good condition.

After four months of monitoring, a Greenpeace report claims that some of the garments donated in Spain travelled thousands of miles, with some items arriving in the United Arab Emirates, others in Egypt, Togo, Chile and Morocco.

Greenpeace also noted that clothing donated in the two stores followed a similar route as clothing donated in public recycling bins.

Around half of the items tracked did not leave Spain, although they did move location several times. Greenpeace believes that these items have not yet arrived at their final destination.

One of the donated items was tracked to Bulgaria, before being sent on to Romania, where it was sold in a second-hand store.

One of the items donated at a Mango store in Barcelona travelled to Valencia before ending its journey at a waste plant in Almeria. Greenpeace says it is impossible to tell whether the garment or tracker alone ended up at the site.

Five items were tracked to the United Arab Emirates, including three that were tracked to the Hamriyah Free zone in Sharkah, where several companies that import and export used clothing and textile waste are based. One of these items was later tracked in Egypt, suggesting that some of these may have been re-exported.

Four items were tracked to Pakistan - two were found in the Karachi Export Processing Zone, where several textile waste companies are based, and two were tracked in an area near the Lyari River, where several used clothing businesses are based. Greenpeace claims that piles of textile waste accumulate in the area.

One item was tracked in Santiago, Chile, in the Chilean branch of a Spanish used clothing company. Greenpeace claims that the country is known to struggle with textile waste, with piles of used garments accumulating in the Atacama Desert.

The European Environment Agency estimates that 46% of used textiles exported in the EU arrive in African countries, where around 60% are resold and the rest is discarded.

Greenpeace has kept the live tracking of all the devices placed on garments live on its website to track any further movements.

A previous Greenpeace report, shared in May 2022, claimed that most of the clothing sent to East Africa is sent straight to landfill.

Greenpeace claims that used clothing sent from Spain into other European countries usually has a higher value than that sent to Morocco, the United Arab Emirates or Pakistan – which are the main destinations for these exports. It argues that these lower value exports indicate that the clothing sent to these countries is of poorer quality, reducing the possibility of a second life and increasing the risk of environmental harm when it is discarded.

Sara del Rio, a researcher at Greenpeace who led on this investigation, said: “We have been able to verify that the management of clothing that is deposited in containers is far from the circular economy they seek. The current model requires countries from the global south to produce clothing and then manage the waste generated when it is discarded, traveling thousands of kilometres."

Greenpeace said its research shows clothing production needs to be “radically changed” to prevent “false solutions” such as the clothing recycling schemes it investigated. Del Rio added: “As long as this does not change, the second life of clothing will be more of an industry strategy so that we continue buying clothes without regrets on days like Black Friday than a reality.”

Mango and Zara were two of the 30 fashion brands banned from pre-loved platform Vestiaire Collective banned from its platform in November 2023, as part of a wider three-year plan to stop selling fast fashion items altogether and tackle the industry's waste problem.

A spokesperson from Inditex's Zara told Just Style: “Our takeback programme enables customers to donate clothing from any brand. Last year, 60% of the garments collected were suitable for reuse directly by charitable organisations through donation or resale for fundraising, with the remainder recycled wherever possible.

"Our other initiatives to promote circularity includes Zara Pre-owned, a secure platform enabling customers to repair or sell their used Zara products to one-another to extend their lifecycle. Pre-owned is in place in the UK and France already and will be rolled out in Spain and other European markets in the coming months."

Mango had not responded to Just Style's request for comment at the time of going to press.

Speaking at the event, AAFA’s director of brand protection Jennifer Hanks voiced her support for the Stopping Harmful Offers on Platforms by Screening Against Fakes in E-Commerce (SHOP SAFE) Act, which was reintroduced by US Senators Chris Coons and Thom Tillis in September 2023 and could help tackle the growing problem of counterfeit apparel.

“That would hold third party online platforms accountable, so they’d be incentivised to make the necessary changes. They would need to meet the same requirements and face the same accountability as brick-and-mortar stores,” Hanks explained.

The proposed legislation would encourage online selling platforms to use best practices for vetting sellers and stopping repeat offenders on counterfeit products.

“They talk about zero tolerance for counterfeits – a value that’s commendable – but we’ve been hearing that for years,” Hanks said of e-commerce sites, as she added that “close to half” of the sellers on some well-known sites are counterfeiters. She said that it was now time for these sites to put “words into action”.

In October (2023), AAFA called upon the United States Trade Representative (USTR) to consider adding several platforms to the 2023 Review of Notorious Markets for Counterfeiting and Piracy lists.

Consumer education on the possible dangers of fake products was also recommended, as AAFA highlighted some recent cases of potentially dangerous counterfeit apparel products destined for the US market.

A haul of children’s sleepwear was seized by US Customs and Border Protection in November (2023), after being identified as an Intellectual Property Rights violation. Imported from China, the US Consumer Product Safety Commission said the products also failed flammability requirements under the Flammable Fabrics Act.

“The vast majority of children’s clothing that are counterfeit trademarks or designs also pose health and safety risks such as the failure to meet flammability standards, as they are made with inferior materials,” Hanks warned.

Last year, AAFA conducted tests on 47 counterfeit products, including clothing, footwear and accessories, and found that 36.2% of the items failed to comply with US safety standards. Some of the tested items contained dangerous levels of poisonous materials including lead, arsenic and phthalates.

“Not only did these items fail US safety standards, but they could also have made consumers dangerously ill,” Hanks said.

The growing scale of the issue, as online sales have become increasingly popular since the pandemic, was also clear. Hanks said this is damaging the US economy.

"Legitimate brands invest millions to build, train and inspect supply chains to ensure that the clothes and shoes and accessories bought and worn by American families are not only fashionable, but affordable and are also ethically and sustainably sourced and safe for consumers," Hanks added. "It's beyond dispute that counterfeits cause grave harm to innovation and our economy."

The National Association of Manufacturers estimated that counterfeit products cost the the US economy $131bn and 325,000 jobs in 2019. It cited the rise of e-commerce as a factor in the growing trend for these fake products.

In November (2023), the US Attorney’s Office in New York announced it had seized its largest-ever haul of counterfeit goods including bags, clothes, shoes and other products, with an estimated retail value of $1.03bn, from a storage facility in the state.

Consumers were also warned that counterfeiters often target customers for other illicit activities, including money laundering and cybercrime, once they have made their purchases. Hanks said that consumers should be wary of these sellers: “Their entire business model is based on stealing somebody else’s innovation and identity.”

USA-IT spokesperson and former active executive associate director of homeland security investigations Alysa Erichs added that there was “no silver bullet” for tackling counterfeits and stressed that consumers have a role to play in shutting down the market.

“The lucrative third party sellers posting knock-offs on social media are often directly benefitting a host of nefarious actors,” Erichs warned, adding that beneficiaries from counterfeit products could include transnational criminals and even terrorist organisations. “The buying and selling of counterfeit or stolen goods is most certainly not a petty or victimless crime,” she added.

“It’s about making a choice the right choice,” Erichs added and asked consumers not to let “Black Friday fund the black market”.

AAFA's Hanks added the pending legislation would help, alongside raised consumer awareness, to stamp out the problem. She added: “We have before us legislation that can break this cycle and change the narrative and finally deny counterfeiters the ability to prey on our population.”