Fashion Brands Struggled to Verify Supply Chains
A new TrusTrace report reveals that most fashion companies lack the data needed to meet tightening global trade requirements.
Updated on Oct. 13, 2026 in Fashion
Live Poll
Should the fashion industry be required to provide full supply chain transparency for all materials?
A report released by TrusTrace found that over one in five fashion brands have faced shipment detentions by Customs and Border Protection. Most firms currently struggle to prove the origin of materials, leaving them vulnerable as border scrutiny intensifies.
Why it matters
Global trade policy is rapidly shifting, with new regulations like the European Union's Forced Labor Regulation and the Digital Product Passport mandate requiring unprecedented supply chain transparency. Failure to provide this proof puts companies at significant risk of border delays and regulatory non-compliance.
Only 20 percent of surveyed firms have verified data from Tier 4 raw material suppliers, while 75 percent report feeling unprepared to provide origin proof. Additionally, 58 percent of companies identify the risk of having goods stopped at a border as a realistic challenge.
The players
TrusTrace
This company provides supply chain traceability software designed to help brands manage compliance and material mapping.
Customs and Border Protection
This U.S. federal law enforcement agency is responsible for regulating international trade and securing borders against illicit shipments.
The details
Most companies still rely on manual data collection methods like email and spreadsheets, which hinder transparency beyond immediate suppliers. While 69 percent of brands are preparing for coming Digital Product Passport regulations, 48 percent of U.S.-based respondents have yet to screen their supplier portfolios against forced labor entity lists.
Timeline
TrusTrace released the report at the Textile Exchange Conference in October 2026.
The European Union's Forced Labor Regulation is scheduled to become effective in 2027.
Culture Shift
The report reflects a broader transition from voluntary ethical sourcing to mandatory transparency enforced by strict international legal frameworks. This shift marks a departure from traditional manual supply chain management toward a requirement for automated, verifiable product data.
Shoppers may eventually face higher prices or product shortages if brands pass on the costs of complex compliance audits to consumers. Customers can also expect to see more labeling regarding material origins as companies rush to meet new documentation mandates.
The takeaway
Companies that rely on manual spreadsheets to track their global supply chains are increasingly vulnerable to border detentions and regulatory fines. Brands should prioritize moving toward automated, verifiable data systems to ensure their products remain compliant with new international standards.
What happens next
The European Union's Forced Labor Regulation is set to come into play in 2027, which will likely trigger stricter enforcement of material traceability standards across the global fashion market.
Further reading
Learn more about the latest developments in Fashion to understand how companies are adapting to these regulations.
Live Poll
Should the fashion industry be required to provide full supply chain transparency for all materials?
