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I absolutely agree with this dilemma but I try my best in a few ways to combat it. I also frequent op shops a lot and I love hunting down cool outfits there. I absolutely will not buy anything with wool, silk or leather in it though, 2nd hand or not. There is a fabulous shop here in Perth that sounds just like what you're talking about EVC - it's called 'Ethical Threads' and just opened in May this year. The owners are a lovely vegan couple who are totally passionate about what they're doing. You can read all about it on the website here:

http://www.stylewithsoul.com.au/

Just last week I went there with my mum to choose my birthday presents and I got a gorgeous hemp jacket and the loveliest pair of trousers, both at 30% off for end of season sale (although still pretty expensive!!)
Hopefully soon shops like this will start opening up all around the country!   

I have a very big ethical dilemma purchasing cotton because it is the worst product environmentally, especially if grown in Australia. But, if it is grown elsewhere, the amount of carbon that is used shipping negates any benefits of growing in suitable climates. Buying from op shops is great because it reduces the amount of virgin materials which are used.
What about trying local up & coming designers because they create all the clothign themselves..you would have to check where they purchase their material from though- I know in Brisbane in the Valley local designers are there on a Sunday. Is there something similar near where you live?

Oooh yes do, EVC, Perth is awesome and I get the impression you and I would get on very well!! 

Glad you liked it Shells!

I collect clothes.  however, the only clothes I buy new are for dance (and even still i end up making most of my own leg warmers out of old sweaters and shorts and tops secondhand).  I love restoring old clothes because everything tells a story.  I am in LA and buying clothes new on a student's budget....  honestly I see all these kids with new clothes all the time and I have no idea how they can afford it. 

I never really thought about the ethical dillema, tho because of this topic I am now more aware.  I always just think that secondhand clothes are unique and awesome.  Like a treasure hunt....  only the funny thing is that I never go out finding for clothes... they find me.  that's how I know it's meant to be<3

I have a shirt from wholefoods that is "organic cotton" though.  It was freakin expensive.  like over $20 for a t shirt is way over my budget.  Didn't eat very much that day.  not a very "ethical" move if you ask me.  *

it would be a dream come true for me to come out with a line of "ethical" active gear that is fashionable enough to wear out and to work in and school and still comfy enough to bust out the splits while waiting for the bus (to limit the amount of changing and bulk for the girl on the go- i.e. me), but something is telling me that I don't want to get into that world...  but something else is telling me just to go for it!  =)