Take Control of Apparel Compliance in a New Era of Global Regulation

Compliance is a network problem: Apparel companies and suppliers are deeply intertwined

The enactment of the US Uyghur Forced Labor Prevention Act (UFLPA) signaled a paradigm shift in supply chain enforcement—and few industries are as immediately impacted as apparel. The UFLPA prohibits the importation of goods made in whole or in part in the Xinjiang Uyghur Autonomous Region of China (XUAR), presuming that these goods have been made with forced labor unless proven otherwise.

Estimates show that over 20% of the global cotton supply originates in Xinjiang. Cotton first picked in Xinjiang is often mixed with cotton from other regions before being turned into yarn and fabric for a final garment, demonstrating the complexity of identifying and monitoring modern apparel companies’ value chains.

Other forced labor measures—such as the EU's Corporate Sustainability Due Diligence Directive (CSDDD) and the UK's Modern Slavery Act—are also taking hold around the world, underscoring the need for multi-tier visibility and the ability to dynamically monitor and manage supplier networks.

Significant consequences for compliance failures, but also an opportunity to reach a wider consumer base

For apparel makers, noncompliance carries significant costs. Shipments detained at the border can result in a company missing out on revenue from a full selling season, with legal fees and storage adding even more unexpected financial pressure. Detentions of seasonal goods can be even more damaging to revenue, as the time-sensitive opportunity could be completely missed. Beyond just the detention of goods tied to forced labor and fines, failure to comply can also result in reputational damage.

Apparel makers urgently need a way to engage suppliers and verify sourcing deep within multi-tier value chains to manage compliance requirements—especially as more companies are added to the Department of Homeland Security’s UFLPA Entity List, which identifies organizations associated with the use of forced labor in the Xinjiang region.

But new regulatory requirements also offer an opportunity for apparel companies to meet growing consumer demand for sustainable, ethically sourced garments. From fair trade certifications to net-zero carbon initiatives, brands can now turn compliance into a competitive advantage in an increasingly crowded marketplace.

Due diligence and traceability are now imperative for brands of all sizes. However, ensuring compliance and resilience from the early stages of supplier onboarding has traditionally been expensive and labor-intensive. Existing methods such as manual surveying and attestation are highly time-consuming and require Tier 1 suppliers to fill out duplicative documentation, making it difficult to proactively mitigate disruptions for all parties.

Instead, brands and suppliers need a shared source of truth—helping ensure robust compliance against evolving regulations while maintaining consumer trust.

Altana, the world’s first value chain management system, gives retailers a unified, one-stop solution to multi-tier, cross-border compliance

See all of your value chains, upstream and downstream, built from detailed material flow visibility and based on your actual product inventory rather than suppliers' self-reported component charts.

Focus on areas of exposure and determine priorities amid the thousands of products in your inventory. Screen new and existing suppliers and products against every compliance requirement—from forced labor to carbon emissions to sanctions—with relevant alerts, tailored insights, and AI decision support across all your product lines.

Act across your value chains to get every compliance job done—whether triaging potential risks, collecting and verifying documentation from distant suppliers, or building audit trails. Create, manage, and file mandated regulatory reports and escalate concerns both internally and to upstream suppliers from a shared source of truth.