USA Law and Practice Contributed by: Michael G. Congiu and Gillian Gilbert, Littler
2.2.6 Other New York Fashion Sustainability and Social Accountability Act (NYFSSA) – Bill A8352/ S7428 The New York Fashion Sustainability and Social Accountability Act (NYFSSA) is a proposed leg - islative measure aimed at enhancing environ - mental and human rights due diligence within the fashion industry. The bill would apply to all fashion retail sellers and manufacturers conducting business in New York State with annual worldwide gross receipts exceeding USD100 million. Under the proposed legislation, each covered entity would be required to publicly disclose its: • environmental and social due diligence poli - cies; • implementation processes; • outcomes, including any significant actual or potential adverse environmental and social impacts; and • targets for prevention, mitigation, and con - tinuous improvement. Disclosures must be made available on the com - pany’s homepage via a clear and easily acces - sible link within 12 months of introducing the relevant policies and procedures. For compa - nies without a website, written disclosure must be provided within 30 days of receiving a con - sumer’s written request. At a minimum, the required report must include: • supply chain mapping; • a social and environmental sustainability report; • impact disclosures on prioritised adverse environmental and social impacts, to be
completed within 18 months of policy imple - mentation; and • targets for impact reduction, along with mechanisms for tracking due diligence efforts and outcomes, including estimated timelines and benchmarks where feasible. The New York State Attorney General (AG) or a designated administrator would be authorised to enforce the Act. Enforcement mechanisms include civil proceedings for injunctive relief, monetary damages, or court-ordered compli - ance. Companies that receive a notice of non-com - pliance and fail to remedy the issue within three months may be subject to fines of up to 2% of annual revenues for entities generating USD450 million or more in annual revenue. 2.2.7 Soft Law on Business and Human Rights On 20 March 2024, the United States released an updated National Action Plan (NAP) on Responsible Business Conduct (RBC), sig - nalling a renewed commitment to advancing human rights, labour protections, environmen - tal sustainability, and ethical business practices through soft law mechanisms. Unlike binding legislation, the NAP operates as a framework of expectations and guidance, encouraging US businesses to align with international norms without imposing direct legal obligations. This updated NAP builds on international stand - ards such as the UN Guiding Principles on Busi - ness and Human Rights (UNGPs), the OECD Guidelines for Multinational Enterprises, and the ILO Tripartite Declaration. It emphasises HRDD as a core expectation, urging companies to pro - actively identify, prevent, and address risks to people – not just to business operations. HRDD
125 CHAMBERS.COM
Powered by FlippingBook