The official designation of SDG 12 is “Ensure sustainable consumption and production patterns.” This chapter analyzes the setting and circumstances of the fashion business via a literature study to attain the objectives of SDG 12. After an in-depth analysis of greenwashing in the fashion sector and its emergence within the fashion industry, evidence and reports of greenwashing, its adverse impacts on fashion consumers, existing regulations, and various mitigation strategies, it is concluded that greenwashing in the fashion industry poses significant threats to achieve SDG 12. Considerable evidence of greenwashing legislation from developed countries compared with developing countries has been observed, and developing countries must keep pace with the tempo of reforming regulations in the fashion sector. Developed countries’ primary focus is on consumption while developing nations are renowned for their role as manufacturing centers. Both parties must implement legislation to prevent greenwashing in the fashion industry, as fashion brands rely on complex supply chains. Furthermore, developed countries must establish comprehensive regulations and can observe each other’s regulations to build more effective regulations. Additionally, informing consumers about greenwashing and their readiness to advocate for and comprehend sustainability was imperative, as it is crucial for sustainable production and consumption. For the customer, sustainability may represent a preference rather than an obligatory need. Conversely, when fashion businesses fail to comply with rules, they face fines. Educating consumers is essential to prevent greenwashing in the fashion sector when regulations are organized in this way. A few preventive measures have been provided to curb greenwashing phenomena.