The apparel industry significantly contributes to climate change through its carbon emissions, excessive water usage, and waste accumulation, leading to environmental degradation and social issues such as modern slavery and poor working conditions. Amid increasing customer awareness and demands from international organizations for transparency, traceability has emerged as a critical concept, especially with advancements in technology. This study employs an interpretive case study approach, drawing early observations from a pilot project focused on traceability implementation within an apparel manufacturer and its chain-of-custody. This exploration is timely, as numerous similar initiatives are underway globally. Our research reveals that, even with the best technologies and intentions, achieving true transparency through traceability remains a challenge, often distancing stakeholders from meeting sustainability goals. Developing six (6) propositions along the way, we identify the fallacies of sustainable supply chain arising in relation to the notion of chain-of-custody. This study underscores the necessity of a collaborative approach among stakeholders to enhance traceability efforts and contribute meaningfully to sustainable practices in the apparel sector.