The bill seeks to mitigate the environmental impacts of the fashion industry in Washington State by imposing new regulations on fashion manufacturers and retail sellers with an annual worldwide gross income exceeding $100 million. These companies are required to disclose their environmental due diligence policies, processes, and outcomes, including significant adverse environmental impacts. They must map at least 50% of their supply chain and report on their greatest environmental impacts related to low wages, energy use, greenhouse gas emissions, water, and chemical management. Starting January 1, 2027, these companies will also need to establish and track performance targets in these areas, with annual reporting to the Department of Ecology.

In addition to these requirements, the bill establishes penalties for non-compliance, including civil penalties of up to $5,000 for first offenses and $10,000 for repeat offenses. It creates a community benefit account to fund environmental projects for overburdened communities, with penalties collected deposited into this account. The legislation allows individuals to initiate civil actions against companies for violations and mandates the Department of Ecology to publish annual compliance reports. Furthermore, the bill introduces the "Washington Fashion Sustainability Accountability Act," which promotes sustainability by setting recycled minimum postconsumer content for covered products and outlines the Department of Ecology's regulatory authority in this area.