In the fashion world, where red-carpet looks make headlines and designers compete to leave their mark, a behind-the-scenes powerhouse drives many iconic celebrity looks: Public Relations (“PR”) loans. Fashion and celebrity culture have long been deeply intertwined: from red-carpet events to social media posts, what celebrities wear significantly influences consumer preferences and brand visibility. 1[1]1 Laure Guilbault, The Science of Celebrity Marketing at Fashion Week, VOGUE BUSINESS (Sept. 25, 2023), https://www.voguebusiness.com/fashion/the-science-of-celebrity-marketing-at-fashion-week. Ever wonder how they got that outfit? Spoiler alert: they probably did not buy it. In recent years, the practice of loaning garments to celebrities—commonly known as PR loans—has become a fundamental fashion marketing strategy. 2[2]Ekta Rajani, The Cost-Benefit of Loaned Clothing, THE VOICE OF FASHION (Nov. 29, 2023), https://www.thevoiceoffashion.com/centrestage/opinion/the-costbenefit-of-loaned-clothing-5747. However, beneath the glamour, PR loans operate in a legal gray area, where informal agreements, unclear liability, and intellectual property concerns create challenges for brands, stylists, and designers. The fashion industry needs to develop best practices to protect all parties, optimize the PR loan strategy, and meet related legal challenges. The alternative might be lawsuits for damaged or unreturned goods or for infringement of celebrity publicity rights, as discussed in the cases below.
Inside the PR Loan Process
When a brand loans an outfit to a public figure, it is a calculated marketing strategy. Designers loan outfits to celebrities and influencers for high-profile events such as awards shows, galas, or fashion events, creating a mutually beneficial relationship. 3[3]The Daily Front Row, Publicists Dish About the Rules of Borrowing, THE DAILY FRONT ROW (Mar. 11, 2014), https://fashionweekdaily.com/publicists-dish-about-the-rules-of-borrowing/. As highlighted by The Voice of Fashion, this practice is “a well-established part of fashion marketing” that strengthens brand associations and reinforces industry influence. 4[4]Rajani, supra note 2. In some cases, brands even collaborate with stylists to customize pieces for high-profile figures, tailoring designs to meet specific preferences. 5[5]Daily Front Row, supra note 3.
The selection process begins when a celebrity or stylist chooses looks from a line sheet or editorial lookbook. 6[6]Nina Miyashita, Celebrity Stylists Outfit Formulas, VOGUE (Apr. 23, 2024), https://www.vogue.com.au/fashion/news/celebrity-stylists-outfit-formulas/image-gallery/d92c88b2eb86c8fa7d6e983548a224f1. From there, the brand’s PR team handles the logistics, coordinating the loaning process to ensure seamless delivery and return. One stylist shared her experience with Fashion Week Daily, explaining how crucial timeliness and conditions are: “If something’s gone unworn, late, or ruined, we’ll enter invoice territory.” 7[7]Daily Front Row, supra note 3. It is a process that operates at the intersection of fashion and law, where every handshake, invoice, and unwritten expectation has the potential to impact future collaborations and relationships.
Leveraging Visibility for Brand Success
For brands, PR loans are a powerful tool for visibility, shaping industry trends, and solidifying designers’ reputations. Unlike traditional advertising, which requires significant financial investment, PR placements capitalize on organic exposure, leveraging the influence of celebrities and influencers. 8[8]Jori White, The Impact of Influencer Marketing on Public Relations (last visited Feb. 23, 2025), https://www.joriwhitepr.co.uk/articles/the-impact-of-influencer-marketing-on-public-relations?utm_. Photos exist online indefinitely, appearing in search results, social media, and fashion archives. A single photo of a celebrity wearing a designer can do more than an entire ad campaign and can catapult an unknown designer to global recognition. 9[9]Dhani Mau, How Celebrity Dressing Works off the Red Carpet, FASHIONISTA (Oct. 18, 2015), https://fashionista.com/2017/09/dressing-celebrity-outfits-stylists-pr.
For example, Beyoncé’s appearance in Marine Serre’s crescent-moon bodysuit in her visual album “Black Is King” led to a 426% surge in global searches for the brand’s print within 48 hours, solidifying it as a defining design of 2020. 10[10]Emma Allwood, Searches for Marine Serre after Black Is King, DAZED DIGITAL (Aug. 5, 2020), https://www.dazeddigital.com/fashion/article/50033/1/searches-for-marine-serre-moon-print-bodysuit-beyonce-black-is-king. The visibility did not just drive short-term engagement; demand for the brand continued to grow, with a 51% week-on-week increase following the album’s release. 11[11]Id. These moments create stories, buzz, and lasting impressions, as the looks are not just styled—they are strategized. With strategic placements, PR loans ensure that brands remain part of ongoing conversations in fashion, media, and consumer trends. Whether it is a red carpet-appearance, a viral social media post, or an editorial feature, these moments extend a brand’s reach far beyond its original audience. This lasting visibility makes PR loans an essential strategy for brand growth.
The Fine Print: Contracts, Intellectual Property, and Legal Gray Areas
Despite being common in the fashion industry, PR loans are not without legal complexities. While some arrangements are as casual as texting, “Can my client borrow this?” others come with contracts outlining every detail. Unclear or unenforceable agreements create risks for both brands and stylists. 12[12]Thinking of Lending Your Clothes? LAW ON THE RUNWAY (last visited Feb. 23, 2025), https://lawontherunway.com/blog/pullletter/?utm. In some cases, high-profile celebrities and brands formalize loan agreements, outlining requirements such as compensation, social media obligations, and return conditions. 13[13]Id. In contrast, many PR loans lack formal contracts, relying instead on industry norms and trust. While common, this informal approach can lead to legal disputes if expectations are unmet. 14[14]Fawnia Soo Hoo, What Fashion Week is Like for an Influencer Wrangler, FASHIONISTA (Oct. 17, 2018), https://fashionista.com/2018/02/fashion-week-influencer-marketing-manager. As one insider noted, “I would say more of the digital influencer negotiation is a handshake agreement and, frankly, sometimes they don’t show up. Even if you sent clothes to dress them.” 15[15]Id. Without clear and enforceable terms, brands could face significant risks, including financial losses and strained professional relationships. A dispute over celebrity dressing expectations arose in 2017 when Chanel and Meryl Streep became involved in a public controversy after Streep allegedly dropped out of wearing a Chanel couture gown to the Oscars in favor of another designer who was willing to pay her to wear their dress. 16[16]Sarah Jones, Chanel and Meryl Streep in Celebrity Dressing Controversy, FASHIONUNITED (Feb. 27, 2017), https://fashionunited.com/news/fashion/chanel-and-meryl-streep-in-celebrity-dressing-controversy/2017022714861. Chanel publicly accused Streep of backing out of a custom look for financial reasons, while Streep denied being offered or accepting payment. 17[17]Id. This incident highlights the tensions that can arise from informal or poorly documented agreements between celebrities and designers, where expectations about publicity, exclusivity, and compensation are not contractually formalized. It illustrates how reliance on industry norms and assumptions instead of enforceable agreements can quickly lead to misunderstandings, public disputes, and potential legal claims.
Liability is another significant concern, as garments loaned for events are often expensive and delicate—sometimes even bespoke or custom-made—raising questions about who bears responsibility for damage or loss. 18[18]Daily Front Row, supra note 3. While some brands may choose not to pursue legal action, others invoice for damages or renegotiate future opportunities. 19[19]Id. This lack of standardization highlights the need for more explicit guidelines and enforceable contracts in the PR loan system. 20[20]Rajani, supra note 2.
Legal Precedent
A recent lawsuit, Dover Street Market New York LLC v. Reynolds, illustrates these challenges. 21[21]Dover Street Market New York LLC v. Reynolds, Charles et al., No. 0652350/2022 (N.Y. Sup. Ct. filed July 7, 2022). In this case, celebrity stylists allegedly failed to return or pay for 49 loaned pieces valued at over $34,000, prompting the brand to seek legal recourse. 22[22]Priscilla DeGregory, Stylists for Cardi B’s sister owe $34K on consigned designer duds: lawsuit, NY POST (July 10, 2022), https://nypost.com/2022/07/10/stylists-for-cardi-bs-sister-hennessey-carolina-hit-with-34k-suit/. The brand accused the stylists of “abusing the privilege” of the loan arrangement, claiming that the absence of formalized terms left them with a financial loss. 23[23]Id. The case remains in the pre-trial phase, with no public records indicating a settlement or dismissal. 24[24]Id. This ongoing litigation highlights the risks associated with informal PR loan agreements in the fashion industry. Without clear, enforceable contracts, brands may face significant legal and financial challenges when disputes arise over loaned items. As The Voice of Fashion explains, PR loans are part of a fashion marketing system that thrives on trust and long-term relationships between brands, stylists, and public figures. 25[25]Rajani, supra note 2. However, stylists break that trust—as seen in the Dover Street Market case—it underscores the necessity of enforceable contracts with clearly defined expectations. 26[26]Id. As the fashion industry continues to evolve, addressing these legal vulnerabilities will be critical to the future of PR loans—not just as a marketing strategy, but as a professional practice that demands accountability and transparency.
Intellectual Property Rights
Another area of legal complexity involves intellectual property (IP) rights. When celebrities post photos of themselves wearing PR-loaned items, copyright and licensing questions can arise, particularly if these images are reused commercially. 27[27]Steve Vondran, The Dangers of Using Celebrity Photos for Commercial Purposes, VONDRAN LEGAL (Jan. 22, 2023), https://www.vondranlegal.com/the-dangers-of-using-celebrity-photos-for-commercial-purposes?utm_. A photo from a red carpet or runway may end up in magazine features, social media posts, or even commercial campaigns—but that does not automatically give brands the right to repurpose those images for marketing. 28[28]Id. Brands that repurpose these images for commercial purposes ordinarily must obtain licensing rights from the photographer and the celebrity. 29[29]Michael Hoisington, Celebrities Sue Over Unauthorized Use of Identity, HIGGS LAW (Aug. 20, 2024) https://higgslaw.com/celebrities-sue-over-unauthorized-use-of-identity/?utm_. The individual who captures the photograph—whether a celebrity or a professional photographer—holds the copyright to that image. 30[30]Enrico Schaefer, Copyright, Publicity Rights and Social Media Influencer Licensing, TRAVERSE LEGAL (Nov. 19, 2019), https://www.traverselegal.com/blog/influencer-copyright-publicity-rights/?utm_. This ownership grants them exclusive rights to reproduce, distribute, and display the photograph. 31[31]Id. If a PR firm or brand wishes to use the image for promotional purposes, they must obtain permission from the copyright holder or face a possible infringement claim. 32[32]Id. In addition, if the brand wants to associate its goods with the celebrity captured in that photograph or suggest the celebrity endorses the goods, it must license that right or risk a right of publicity infringement claim.
These legal lines can easily be crossed, as shown in a recent case, Champion v. Moda Operandi, Inc., where a group of professional runway models sued Vogue and Moda Operandi. 33[33]Champion v. Moda Operandi, Inc., 561 F. Supp. 3d 419, 425 (S.D.N.Y. 2021). The models had walked in designer runway shows, and their photos later appeared on Vogue’s website with “Shop This Look” links redirecting viewers to Moda Operandi’s retail page. The key issue before the court was whether Moda Operandi and Condé Nast (Vogue) unlawfully used images of these professional runway models without their consent in a way that falsely implied endorsement, violating the Lanham Act and New York’s Right of Publicity Law. 34[34]Id.at 428. In evaluating the claims against Vogue, the court applied the Rogers test, which is used to determine when the use of a person’s name or likeness in an expressive work is protected by the First Amendment. Because Vogue’s use of the images was found to have artistic relevance and was not explicitly misleading, the court dismissed the claims against it. However, it allowed specific claims against Moda Operandi to proceed, as using identifiable model images for direct retail purposes was found to violate the Lanham Act. 35[35]Id. at 434. The surviving claims continued into discovery, and the case ultimately settled in 2023. 36[36]The Fashion Law, Models and Moda Operandi Settle Lawsuit Over Use of Runway Images, THE FASHION LAW (July 14, 2023), https://www.thefashionlaw.com/models-moda-operandi-settle-lawsuit-over-use-of-runway-images/. This illustrates a critical principle for brands working with talent in marketing contexts: just because someone wears clothing from a brand does not mean that brand has the right to use their image commercially. The underlying issue—repurposing imagery from a non-commercial context into a marketing tool without clear permissions—could just as easily arise from a PR loan gone wrong.
Brands must ensure that all parties involved—stylists, photographers, influencers, and PR teams—understand who owns what, who can use what, and under what circumstances. Without clear licensing terms or contracts that define usage rights, all parties are vulnerable. 37[37]Schaefer, supra note 23. Brands risk infringement claims, while photographers or influencers may see their work repurposed without compensation or credit. 38[38]Id.
To mitigate legal risks, brands should consider drafting contracts that clearly outline terms regarding liability and publicity rights. Establishing clear terms in advance would help prevent legal conflicts and ensure that both parties understand their obligations. 39[39]Hoisington, supra note 22. This will ensure that brands have the legal right to feature these high-visibility moments in their marketing campaigns, reducing the risk of disputes and missed marketing opportunities. 40[40]Id.
The Intersection of Fashion, Marketing, and Law
Behind every celebrity look is a calculated collaboration where fashion, marketing, and law converge, and PR loans quietly work behind the scenes to create iconic moments and drive brand success. By loaning looks to celebrities, brands can achieve unparalleled visibility and relevance. However, the practice also comes with its own set of challenges. Clear contractual agreements outlining wear, return conditions, and liability provisions can help mitigate risks while ensuring mutually beneficial partnerships between brands, stylists, and celebrities. 41[41]Id. By proactively addressing legal ambiguities and adopting best practices, industry players can protect their interests, maintain brand integrity, and sustain the long-term effectiveness of this powerful marketing strategy. 42[42]Rajani, supra note 2.
By: Gianna Orioli, J.D. Candidate, 2027
