Highlights
- In accordance with a final rule (the 2024 Rule) published by the U.S. Environmental Protection Agency (EPA) in late 2024, fashion-related articles containing phenol, isopropylated phosphate (PIP (3:1)) will be prohibited from distribution in U.S. commerce beginning Oct. 31, 2026, with only narrow exemptions. Per a prior related rulemaking, companies have been required to maintain business records related to the distribution of articles containing PIP (3:1) since October 2024. The ban is expected to affect a wide range of fashion industry products – including apparel, footwear and manufacturing equipment – and is a part of EPA's broader mandate to regulate certain chemicals under the Toxic Substances Control Act (TSCA).
- EPA's evolving chemical risk evaluations – many of which impact substances used in textiles, dyes, adhesives, coatings and machinery – underscore the need for fashion companies to closely monitor emerging TSCA rules that may significantly impact materials, sourcing and product development. EPA has also completed or initiated TSCA risk evaluations on a variety of other substances with potential relevance to the fashion sector, such as several flame retardants, phthalates and pigments.
- While companies must inventory and assess PIP (3:1) usage in equipment and materials, built-in regulatory carve-outs for recycled content, repairs and trace concentrations offer flexibility for risk mitigation and operations continuity. Proactive response to the 2024 Rule presents a unique opportunity for fashion brands to reinforce sustainability commitments, strengthen chemical transparency efforts and distinguish themselves in an increasingly values-driven market.
Fashion companies increasingly sit at the intersection of sustainability, innovation and evolving chemical regulations. One recent development with compliance obligations and strategic potential is the U.S. Environmental Protection Agency's (EPA) updated rule (the 2024 Rule) under the Toxic Substances Control Act (TSCA) phasing out phenol, isopropylated phosphate (3:1) – a chemical also known as PIP (3:1) that is commonly used in manufacturing equipment, textiles and footwear. Among other phaseouts for manufacturing and processing of PIP (3:1), the 2024 Rule prohibits articles containing PIP (3:1) from being distributed in U.S. commerce beginning on Oct. 31, 2026, subject to limited exemptions.1
While the 2024 Rule (and similar chemical risk management efforts by EPA) may require thoughtful supply chain planning, it also offers meaningful flexibility – and creates an opportunity for brands to lead on transparency, responsible sourcing and environmental, social and governance (ESG)-forward messaging. Companies that move early may mitigate risk, protect commercial continuity and enhance brand credibility in a rapidly evolving regulatory landscape.
Background
The 2024 Rule is part of EPA's efforts to comply with Section 6(h) of TSCA, which requires the agency to take expedited action to address the risks and exposures associated with specific persistent, bioaccumulative and toxic (PBT) chemicals identified in the TSCA Work Plan for Chemical Assessments: 2014 Update.2 It updates and revises a 2021 EPA rulemaking that sought to phase out the distribution of PIP (3:1) by March 2021 (2021 Rule).3 After concerns were raised by several regulated industries following public notice and comment opportunities, EPA extended the compliance deadlines and undertook several years of additional review and stakeholder engagement. The 2024 Rule includes new exemptions and establishes industry-specific compliance timelines.
The agency has taken similar actions on other chemicals, including decabromodiphenyl ether (DecaBDE).4 Section 6 of TSCA also requires EPA to conduct ongoing risk evaluations for existing chemicals and manage identified unreasonable risks. (See Holland & Knight's previous alert, "TSCA Roundup: Existing Chemical Regulation Under the Second Trump Administration's EPA," May 29, 2025.) Statutorily, EPA must evaluate at least 20 existing chemicals at any given time and should begin a new risk evaluation as each one is completed.5 Many such evaluations result in findings of unreasonable risk to human health or the environment and require the agency to promulgate rules restricting or prohibiting specific chemical uses, including the manufacture and distribution of textiles, adhesives and similar articles.6
For example, EPA has completed risk evaluations and is undertaking risk management efforts for two flame retardants – hexabromocyclododecane (HBCD) and tris(2-chloroethyl) phosphate (TCEP) – and is currently evaluating additional flame retardants such as triphenyl phosphate (TPHP) and tetrabromobisphenol A (TBBPA), along with seven phthalate chemicals, one pigment and numerous other substances that may be highly relevant to the fashion sector.
Key Aspects of EPA's PIP (3:1) Rule Relevant to the Fashion Industry
PIP (3:1) is commonly used as an anti-wear additive, plasticizer and flame retardant. It is classified as a PBT chemical under TSCA, pursuant to which EPA issued its PIP (3:1) phaseout rule.
Specifically, subject to certain exceptions and specifications, after Oct. 31, 2026, "articles" containing PIP (3:1) – even those manufactured prior to that date – may not be distributed in commerce.7 An "article" is essentially a finished manufactured product where the chemicals it contains 1) are not to be removed or changed, or 2) have no end use separate from the product itself.8 Fashion-related manufacturing equipment (e.g., sewing machines), fabrics used for clothing and accessories, and shoes can fall within the purview of an "article" and the PIP (3:1) distribution restrictions.
Further, as of Oct. 31, 2024, companies that distribute articles containing PIP (3:1) must maintain business records related to the distribution of these articles, including a statement that the articles are in compliance with the 2024 Rule.9 These records must be made available to EPA upon request.
Select Exemptions of Relevance to Fashion
As particularly relevant to the fashion industry, exceptions to the PIP (3:1) distribution prohibition can include articles that:
- unintentionally contain PIP (3:1) at concentrations below 0.1 percent by weight
- are used as an intermediate in a closed system produce cyanoacrylate adhesives (commonly used with textiles)
- are finished products made of plastic recycled or reused from products or articles containing PIP (3:1), where no new PIP (3:1) was added during the production of the products or articles made of recycled plastic
- contain PIP (3:1), and where PIP (3:1) has not been newly added, for the purpose of repair or maintenance10
Strategic Corporate Compliance Considerations
Companies with operations involving PIP (3:1) – such as sewing machines, embroidery units, textile treatment and shoe production – should verify PIP (3:1) quantities in items they distribute. If PIP (3:1) quantities are greater than the 0.1 percent regulatory threshold, companies should assess applicability of the 2024 Rule's exceptions with experienced legal counsel.
For example, the 2024 Rule does not specify:
- the proportion of recycled plastic content required to qualify for the recycled materials exemption
- whether a part used solely for "repair" may be deemed exempt if it effectively replaces a previous item entirely
These ambiguities may allow for creative strategies that support both compliance and profitability, particularly for companies actively reviewing component sourcing or equipment refurbishment policies.
Further, companies may wish to evaluate their recordkeeping procedures with respect to any articles containing PIP (3:1) to help ensure that any exemptions to the 2024 Rule's prohibitions are accurately documented and certified.
Early Action as a Competitive Advantage
Beyond compliance, early and strategic adaptation to the PIP (3:1) Rule can serve as a powerful ESG and sustainability messaging tool. Brands that pivot quickly may not only reduce risk of revenue disruption but also position themselves as leaders in corporate transparency and chemical stewardship.
Consumers increasingly choose companies that demonstrate proactive social and environmental responsibility, incorporate sustainability into product development, and communicate authentically about risk reduction and long-term impact. When paired with thoughtful communication, these actions can drive measurable brand value.
Companies should consider working closely with legal counsel now to evaluate article-specific supply chains for PIP (3:1) presence, strategically assess applicability of exemptions, and develop ESG messaging frameworks aligned with early compliance and innovation. Such efforts support not only legal certainty but also forward-looking brand positioning in an increasingly sustainability-driven marketplace.
Footnotes
1. 89 Fed. Reg. 91486 ((Nov. 19, 2024); see 40 C.F.R. § 751.407.
2. 15 U.S.C. § 2605(h).
3. 86 Fed. Reg. 894 (Jan. 6, 2021).
4. See U.S. EPA, "Persistent, Bioaccumulative, and Toxic (PBT) Chemicals Under TSCA Section 6(h)."
5. 15 U.S.C. § 2605(b).
6. See U.S. EPA, "Ongoing and Completed Chemical Risk Evaluations Under TSCA."
7. 40 C.F.R. § 751.407(a)(2)(iii).
8. 40 C.F.R. § 751.403.
9. 40 C.F.R. § 751.407(d).
10. 40 C.F.R. § 751.407(a); (b)(iv), (vii)-(viii).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
