Introduction
In my last article, I explored how Extended Producer Responsibility (EPR) could reshape the landscape for Canadian small and medium-sized fashion businesses, highlighting the disproportionate strain it risks placing on those already committed to sustainable and local production. What became clear is that the discussion of EPR in fashion has largely excluded the very businesses most impacted by its implementation.
Small businesses make up 98% of Canada’s fashion landscape, yet their voices have been noticeably absent from policy conversations. Ensuring these businesses have a seat at the table is essential for creating solutions that reflect the realities of Canada’s fashion economy.
To bring their perspectives forward, I gathered feedback through an electronic survey and 11 in-person interviews, representing more than 40 small Canadian fashion businesses. Consistent themes emerged that reveal both deep skepticism and cautious optimism about what EPR might mean for the future of sustainable fashion in Canada.
In this article, we explore:
• Awareness and Initial Reactions
• Missing Link
• Barriers to Compliance
• Economic and Political Uncertainty
• Policy Suggestions and Alternatives
• Long-Term Vision and Fears
1.0 Mixed Awareness and Initial Reactions
Survey data showed awareness of EPR is still uneven. Just over half of the respondents had never heard of it before.
Even among those familiar with EPR, there is uncertainty. Many noted that while they don’t yet know exactly how the rules will apply to their business, they are clear on one thing: any new fees will inevitably increase the cost of production. For brands already operating on razor-thin margins, this is where concern quickly sets in.
Some saw EPR as aligning with their values:
“It is imperative that someone takes ownership of the waste they create. And if I’m creating that waste, it should be me.” — Shannon Dixon, Simply Merino
Others worried it risked penalizing Canadian makers while leaving fast fashion giants unchecked:
“EPR is good for the environment, but small businesses can’t be put in the same basket as big corporations.” — Marie-Eve Bournival-Paré, Clothes & Roads
A recurring concern across both surveys and interviews was whether EPR would actually hold major polluters, such as Shein, H&M, and Zara, accountable, or simply create another barrier for Canadian SMEs.
2.0 The Missing Link: Infrastructure
The strongest consensus point, across all interviews and surveys, was the absence of Canadian textile recycling infrastructure.
Shannon from Simply Merino shared that her company has already diverted more than 18,000 pounds of textile waste, but had to send it to the U.S. for recycling.
“We need to figure out recycling infrastructure before we force people into a system that doesn’t exist.”
Without building this foundation, many fear EPR could become more punitive than productive.
3.0 Barriers to Compliance
Several consistent challenges emerged:
• Financial strain: Nearly half of survey respondents said EPR would have a significant negative financial impact on their business.
• Price increases: Many estimated they’d need to raise prices by 10–20% to cover compliance. A margin that customers may not absorb in today’s economy.
• Grant inaccessibility: While some applied for over a dozen grants in a year, most reported receiving little to no support.
• Administrative burden: Rules designed for large corporations risk overwhelming microbrands.
“Everyone is just trying to survive right now. There’s no bandwidth for a major new cost like EPR.” — Carissa McCaig, Copious Fashions
4.0 Economic and Political Uncertainty — Now Reality
At the time of these conversations, U.S. tariffs on Canadian goods were only a looming possibility. They have since been implemented, with reports confirming price increases across affected sectors (Yousif, 2025).
For some brands, like Dotty and Pom & Chi, U.S. sales are minimal, so the effect is limited. But for others, the combination of tariffs and EPR feels like an existential threat.
“If I’m a Canadian brand facing tariffs and EPR costs, there’s no incentive to manufacture in Canada.” — Lennard Taylor, Lennard Taylor Design Studio
Sasha Jardine (Ste Marg Scot) added:
“Our industry is already very small. Without support, tariffs and EPR together could push more people out.”
5.0 Policy Suggestions and Alternatives
When asked what support would make EPR feasible, the majority of survey respondents pointed to grants and subsidies, followed by better access to recycling partnerships and clearer educational resources.
Across interviews, brands consistently called for incentives over penalties:
• Subsidies for sustainable fabrics.
• Tax credits for waste reduction.
• Specialized grants for local supply chains.
• Templates or case officers to help SMEs comply.
“EPR feels like it penalizes the businesses doing the right thing, instead of supporting us with alternatives or subsidies.” — Carissa McCaig, Copious Fashions
6.0 Long-Term Vision and Fears
Survey results reinforced a shared concern. Only one respondent foresaw a positive impact from EPR. Most anticipated neutral or negative outcomes unless infrastructure and supports are introduced.
One Canadian brand suggested that EPR could help weed out unsustainable players, while another saw potential to elevate Canadian-made fashion if implemented collaboratively.
But overall, trust is low, and the mood cautious:
“First thing that comes to mind with EPR is chaos — without infrastructure and customer compliance, it won’t work.” — Marie-Eve Bournival-Paré, Clothes & Roads
“We don’t have a large-scale fashion industry in Canada — if EPR comes without infrastructure, it will harm the very small businesses keeping it alive.” — Carissa McCaig, Copious Fashions
7.0 Conclusion — Building From Here
EPR risks reinforcing the very issues it claims to solve if applied uniformly without considering scale and context. These brand voices confirm that fear.
Small fashion businesses are not the problem. They are already working toward sustainability. The real gap lies in Canada’s absence of a functioning textile recycling industry. Without investing in this infrastructure, even the most well-designed EPR framework will fall short.
Policymakers must also ask hard questions about where accountability is directed. Fast fashion imports generate the bulk of the problem, yet a policy like EPR risks destabilizing the independent Canadian brands that make up 98% of the sector.
If EPR is to succeed, it must build from the ground up: infrastructure, incentives, and proportional rules that target the true drivers of overproduction and waste. Otherwise, Canada risks losing the very businesses that make its fashion industry vibrant, diverse, and sustainable.
Acknowledgements
A heartfelt thank you to all the Canadian fashion brands that took the time to complete the survey and share their experiences through interviews. Your honesty, insight, and continued commitment to sustainability made this article possible. I’m deeply grateful for your willingness to speak candidly about the challenges and hopes shaping the future of Canadian fashion.
Deborah King
Deborah is a sustainable fashion expert located in Toronto, Canada. She’s an Industrial Engineer with a post-grad in Sustainable Fashion Production, and is currently pursuing a Master in Environmental Studies. She grew up on the tiny island of Tortola in the British Virgin Islands, and has been sewing her own clothing since the age of 10. She founded Global Measure to help authentically sustainable and ethical fashion businesses stand out from the greenwashing noise through third-party certification.
Curious to explore EPR further or interested in potential collaborations? Dive into our comprehensive Case Study for a deeper understanding.
References:
Yousif, N. (2025, Aug 1). Five things now pricier in Canada due to tariffs. BBC. Retrieved on Aug 15, 2025 from https://www.bbc.com/news/articles/c1w8jq88xzlo
