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someone posted an article that says that the contestants don't have much of a choice at all about what they wear.

Fox Reality has a "behind the scenes show" where they interviewed the "wardrobe" advisor. Some of the contestants do their own thing. He mentioned that he was working with all of the girls, but that Chris and Ace were "doing their own thing". (I think it was Chris and Ace, but it could have been Ace and someone else.)

Based on the way the interview went, it seemed like he was just there to make suggestions and provide options, if it was desired. It didn't sound like they required them to wear anything specific.

What really goes on inside ‘American Idol’
By KAYE VILLAGOMEZ, Manilla Bulletin Online

_Fashion help. Contestants get fashion help from the show’s production staff. Confined to their respective close door practices, the contestants are given few choices on what to wear, what to look like and how to wear their fashion. There are at least two stylists on board. So when Simon Cowell bickers on a hopeful’s fashion sense, he or she is not much to be blamed for it.