Luxury and the Law: What’s Keeping Brands on Watch

Loeb & Loeb is proud to sponsor the 2025 Luxury Law Summit: Milan.

Loeb partner Michael Barry gives an insider perspective on the shifting state of the luxury brands market, from litigation risks and regulatory pressures to real estate trends and brand reinvention. With luxury under both legal and market pressure, Michael shares why flagship strategies, compliance pitfalls and emerging consumer segments will define the next chapter for luxury brands. He also shares how forward-looking brands can position themselves to stay ahead.

Tell us about your practice and the types of luxury brand matters you generally handle.

My practice focuses on luxury brands and fashion companies based in the U.S., Europe and further afield. I work very closely with clients on everything from day-to-day operations, brand development, intellectual property and litigation strategies to joint ventures and strategic collaborations.

For more than two decades, I’ve served as outside general counsel for the U.S. subsidiaries of numerous international companies, helping them navigate the U.S. legal landscape of corporate governance, retail leasing, employment matters and more.

How would you describe the current state of the luxury brand industry?

The luxury market is both resilient and fragmented. Unlike a single industry, luxury spans multiple sectors—from apparel and jewelry to hospitality and furniture—and each is experiencing different pressures and opportunities. Apparel and fashion have a few soft spots, while jewelry and watches remain somewhat stable and hospitality continues to find growth.

Retail is showing renewed strength, especially as luxury brands reinvest in brick-and-mortar and continue to invest heavily in their e-commerce business. But the legal landscape presents challenges. Many brands are being targeted with lawsuits over alleged regulatory noncompliance, from advertising and environmental claims to claims under the Americans with Disabilities Act (ADA). With respect to the ADA and website accessibility, because it’s nearly impossible to achieve full compliance across all platforms, claims under the ADA have become a recurring cost of doing business, often resolved with quick settlements that still leave a lasting mark. I have clients that are battling numerous claims filed within weeks of each other.

Real estate is another pivotal piece of the luxury puzzle. Madison Avenue, once left behind in favor of downtown and Soho’s cool factor, is seeing a resurgence. Vacancy rates, which hovered near 28% after the pandemic, have dropped to around 6.5%, and luxury houses are seizing opportunities to reestablish flagship presences. Brands are experimenting not just with leasing but also with purchasing retail properties, a trend that raises questions about whether luxury companies are prepared and equipped to manage real estate portfolios. What’s clear is that there’s renewed confidence in physical retail—from Madison Avenue to Soho, Chelsea and beyond, even as e-commerce remains a key channel.

With shifting consumer expectations and economic pressures, how are luxury brands balancing innovation with the preservation of brand identity?

Luxury brands are continuing to leverage new technologies, sustainability initiatives and hyper-personalized experiences. Meanwhile, they are also very focused on the importance of heritage, authenticity and exclusivity. I’m seeing the multiple brands that I work with flourish by pushing artistic and technological boundaries while keeping a close eye on what defines true luxury.

What legal and regulatory developments—particularly in the U.S. and EU—should luxury brands be paying close attention to, and how might these impact cross-border collaborations or operations?

Luxury brands operating in the U.S. and EU are having to closely monitor rapidly shifting legal and regulatory landscapes, including sustainability and environmental, social and governance reporting mandates, anti-money laundering (AML) rules and, of course, tariffs. The EU in particular has been busy, with its new AML Authority bringing harmonized due diligence and reporting rules and new unified and streamlined sustainability reporting requirements, merging several sustainability directives into a digital compliance program. Successful luxury brands, with the help of their outside consultants, are adapting their legal, regulatory and supply chain strategies to maintain competitiveness and sustainable cross-border collaborations.

Looking ahead, what emerging trends or challenges do you believe will most influence luxury brands, and how should brands prepare to stay ahead?

Luxury remains under some pressure, with recent reports showing some high-end fashion houses posting weaker sales numbers. Yet, with the global customer base broadening, the overall outlook does suggest growth. Luxury has historically focused on the ultra-wealthy, but I am seeing new brands and categories engaging with consumers with an emphasis on greater accessibility. Existing brands will need to watch this shift carefully when reviewing pricing strategies and distribution channels. Collaborations and marketing have always been important, but I’m seeing renewed focus on these strategies.

Overall, striking the balance between exclusivity and a more competitive landscape is going to be key for successful brands, and for those that do, the future continues to look promising.