Fashion, a bastion of creativity and innovation, has increasingly intertwined with technology to redefine retail trends, consumer experiences, and operational efficiencies.
Tech has made virtual try-on of wearables possible, rescuing shoppers from trial room queues. Tech can also create a realistic visualization of how furniture will look or fit in a space. Tech integrated products such as T-shirts, eyeglasses and the like, in addition to their functionality, are adding to the 'kewl' quotient, making fashion attractive for non-shoppers.
Data analytics and AI are continuously re-defining consumer choices, predicting options based on past likings or future trends. 3-D printing is enabling the creation of intricate designs that were previously impossible or would take very long with conventional methods.
The list is endless.
As this integration deepens, there are several legal nuances and compliances to think about.
Protecting technology is all about getting intellectual property rights in order. There is a surge in patent filings with companies the world over, securing patents for innovations such as virtual makeup try-on technology and personalised skincare applications. While India doesn’t patent "computer programs” per se, inventions offering technical advancements may qualify for patent protection. With the need to protect proprietary technology in fashion, an evaluation of patentability, its protection in India and world over should be a priority.
Use of AI to create designs, music etc. is becoming mainstream. This has given rise to searching questions of ownership of such creations, as well as pinning liability for AI generated infringing content. Legal due diligence on ability to utilize content for AI use, obtaining necessary licenses, royalty payments, and a legality check of the end product before release assumes criticality now more than ever.
User Privacy and data protection is another aspect for fashion tech platforms to focus on. Users are regularly asked to give access to phone galleries or allow their photos to be taken for various tech-enabled shopping experiences. Some platforms use customer information such as facial features, height, weight, skin or other heath conditions to offer custom-fit product choices. User data such as phone numbers and e-mail IDs are also processed for functions such as targeted marketing.
Upcoming data protection laws in India require explicit user consent for all various types of data processing. As privacy regimes become robust and implementation strict, fashion tech platforms must obtain consents for data collection, use and sharing in the manner prescribed under law. Further, data security is an added obligation of the platform. Any data breach or misuse could result in exposure under law.
Platforms also need to ensure that any advertising must deliver as promised. Unfair means of marketing, mis-advertising including dark patterns in advertising must be refrained from to avoid the consequences under consumer protection laws. Further, users must get what they see or are told. A virtual try-on experience cannot be far from reality. If there are likely to be variations between real and reel, clear disclaimers should be considered upfront. Additionally, consumer laws mandate that e-commerce entities establish a consumer grievance redressal mechanism, and offer accurate information on refund, delivery, exchange, warranty, and guarantee policies. These measures are crucial for maintaining compliance and customer trust.
These are some foreseeable legal compliances. More will evolve with fashion tech in time. The industry will need to gear up to understand complex issues such as those relating to copyright ownership and infringement in the virtual world, deepfakes, inappropriate user conduct or user user harm on platforms, identity theft and data misuse (including frauds), among others as fashion-tech evolves.
Further, focus on legal issues may not be enough. Careful consideration of social and non-legal concerns in fashion-tech will be equally important. The addictive nature of retail therapy may warrant policies for shopaholics. Significant time spent on fashion tech could result in digital fatigue, social isolation and health issues. Just like online gaming, these issues may become relevant for fashion tech as well.
At the same time, sustainability in fashion and issues such a recycling will also take centre stage as the surge of consumer products in fashion increases.
A progressive approach towards compliance, accountability and user protection will need to be considered for growth of India’s fashion-tech.
Aarushi Jain is Partner in the Technology-Media-Telecom (TMT) Practice at the Mumbai Office of Cyril Amarchand Mangaldas.
Pooja Kapadia is Principal Associate in the Technology-Media-Telecom (TMT) Practice at the Mumbai Office of Cyril Amarchand Mangaldas.
The views expressed here are those of the author and do not necessarily represent the views of NDTV Profit or its editorial team.
