With the entry into force of the ban on destroying unsold clothes, accessories, and footwear, a new chapter opens for the European fashion industry. The measure initially involves large companies and aims to change the management of surpluses, including accumulated stocks, returns, and products left off the market.
THE NEW EUROPEAN BAN
Since July 19, large companies operating in the European Union can no longer eliminate unsold textile items through incineration or landfill. The rule is part of the European Regulation on Ecodesign for Sustainable Products (ESPR), approved in 2024 with the aim of reducing waste, promoting material circularity, and making products more durable, repairable, and recyclable.
The ban applies to companies with more than 250 employees and over 50 million euros in net annual turnover. From 2030, it will also be extended to medium-sized companies. The new rules particularly affect large fashion and luxury groups such as Lvmh, Prada, Chanel, and Inditex.
FROM DESTRUCTION TO REUSE
Companies will have to prioritize alternatives to destruction, such as selling through discounts or secondary markets, donating to charities and social enterprises, or preparing for reuse through repair, refurbishment, or regeneration.
Destruction will remain possible only in specific cases, for example for hazardous, damaged, counterfeit products or those rejected by donation programs. Companies using these exceptions must demonstrate the necessity through documentation or test results and publish information annually on the goods disposed of. Companies will also have to keep related data for five years, while micro and small enterprises will be exempt from reporting obligations.
A PROBLEM OF HUNDREDS OF THOUSANDS OF TONNES
According to the European Environment Agency, every year in Europe between 4% and 9% of textile products placed on the market are destroyed before use, an estimated amount between 264,000 and 594,000 tonnes. The phenomenon concerns both unsold items and those returned by customers after online purchases.
The growth of e-commerce has contributed to increasing the volume of returns: in the European Union about one in five fashion products purchased online is returned to the retailer and not subsequently resold. No public data are available distinguishing the share of waste attributable to luxury brands versus fast fashion groups.
THE CHALLENGE FOR THE LUXURY SECTOR
For major luxury brands, the ban introduces a profound change in the management of stock surpluses. Without the possibility of destroying unsold goods, notes the Financial Times, companies will have to improve production planning and stock control, reducing the risk of end-of-season accumulations. The new regulation thus pushes brands to forecast demand more precisely and rethink internal processes, also considering costs related to storage, repair, and material recovery.
OUTLETS, DISCOUNTS, AND NEW TECHNOLOGIES
The management of unsold stock also opens a new challenge for distribution channels. To place products remaining on the market, luxury groups, explains Ft, might increase the use of outlets, discounted sales, and secondary markets, risking changes to strategies based on controlled distribution and limited availability. In 2025, up to 40% of luxury goods were sold at a discount, according to data released by Bain and the Italian luxury industry association Altagamma, in a context characterized by weaker demand and stock surpluses.
The new rules could also accelerate the use of artificial intelligence to monitor stocks in real time, forecast demand, and coordinate product availability between stores and warehouses. “The new rules will lead companies to pay even greater attention to planning and stock management,” said Luca Solca of Bernstein. “If unsold stocks can no longer act as a safety valve, the quality of planning will become a competitive advantage,” added Giulia Iuticone, Milan partner of Heidrick & Struggles.
