California Chamber opposes AB 405 citing consumer cost concerns and duplicative regulations

During a recent meeting of the Assembly Environmental Safety and Toxic Materials Committee, significant concerns were raised regarding Assembly Bill 405, which aims to enhance environmental accountability in the fashion industry. While the bill's intentions are to promote sustainability, critics argue it could lead to increased costs for California consumers, particularly impacting low and middle-income families.

Opponents of AB 405, including representatives from the California Chamber of Commerce, highlighted that the bill's compliance requirements—such as mandatory environmental due diligence, emissions reporting, and wastewater testing—would impose substantial operational costs on businesses. These costs are expected to be passed on to consumers, resulting in higher prices for essential items like clothing. With existing economic pressures from rising tariffs, supply chain disruptions, and inflation, the timing of this bill has raised alarms among stakeholders.

Moreover, critics pointed out that AB 405 may duplicate existing California laws aimed at regulating harmful substances in textiles. For instance, the state has already banned PFAS in new textiles starting January 1, 2025, and the Department of Toxic Substances Control (DTSC) oversees regulations concerning chemicals in consumer products. The California Chamber of Commerce urged the committee to allow current laws and regulations time to take effect before introducing additional mandates, emphasizing the need to protect affordability for families in the state.

As the committee continues to deliberate on this bill, the discussions underscore the delicate balance between environmental goals and economic realities for California residents. The outcome of AB 405 could have lasting implications for both the fashion industry and consumers, particularly those already facing financial challenges.