Digital Transparency in Fast Fashion Retail: The Impact of Digital Product Passports on Consumers' Buying Decisions
(A2025-125943)

AUTHORS

Vera Herédia-Colaço, UNIVERSIDADE CATÓLICA PORTUGUESA, Católica Lisbon School of Business and Economics,; Leonor da Silva, Católica-Lisbon School of Business and Economics

ABSTRACT

The European Commission has proposed mandatory implementation of Digital Product Passports (DPPs) for all textile and apparel products sold in the EU by 2030. Similar to traditional passports, DPPs will act as unique digital identifiers, offering detailed information about a product’s lifecycle, including its origin, materials, environmental impact, and retail distribution. Drawing on signaling theory, a pilot and a main experimental study were conducted to understand how DPPs can signal a brand’s commitment to product transparency and ethicality and influence consumer purchasing behavior. Moderated-moderation results show that perceived ethicality strengthens the positive impact of DPPs on willingness to pay only when perceived brand transparency is high, although it does not significantly affect purchase intentions. Overall, this research provides valuable theoretical and managerial insights into the transformative potential of DPPs as track-and-trace tools in enhancing product transparency and traceability within omnichannel fashion retail and how they can influence consumer purchasing decisions.