This article argues that the absence of explicit statutory provisions on unfair purchasing practices in the European Union (EU) legal framework contributes to power imbalances and unfair pricing in global textile and clothing supply chains. It also contends that the existing price-cost benchmark (Average Variable Cost (AVC)-average total cost (ATC) test) under the EU competition law may jeopardize the availability of a viable legal remedy for confronting unfair purchase or selling price practices in business-to-business transactions. This paper examines the influence of a few global framework agreements (GFAs), human rights due diligence (HRDD) legislations, and competition law of the EU on the purchasing practices, which ultimately have a detrimental impact on suppliers in garment and textile supply chains and the wages of the workers. Prominent cases, such as Qualcomm or AZKO, which exclusively concentrated on horizontal competition, did not address the issue of buyers’ accountability in purchasing procedures or the denial of living wages to workers. The assurance of living wages for workers in clothing and textile industries can predominantly be achieved if, as this paper proposes, a stringent prohibition on purchases below production costs is implemented in transactions between fashion brands (buyers) and suppliers.
European Business Law Review