Alert: EU bans the destruction of unsold clothing, footwear & accessories

On 19 July 2026 the EU’s prohibition on destroying unsold clothing, accessories, and footwear came into effect for large companies. This prohibition will apply to medium sized companies from 2030.  This new law is intended to add legal backing to the concept of “Reuse, Repair, Recycle”.

Where does the new law come from?

This prohibition was introduced under Article 25 of the Ecodesign for Sustainable Products Regulation (ESPR), which came into force on 18 July 2024 and broadly seeks to encourage more resource-efficient business practices.

In 2024 the European Environment Agency estimated that 4-9% of all textile products put on the market in Europe are destroyed before use and that online shopping has a large impact on textile destruction. The Agency estimated that one in five garments sold online gets returned, and that a third of all returned clothing from online shopping gets destroyed. Learn more at: EEA: The destruction of returned and unsold textiles in Europe’s circular economy

Fashion waste has been recognised as a global problem for many years.  In July 2026, former warehouse employees stood trial in a court case that revealed that luxury fashion brand Chanel routinely destroyed 10,000 to 20,000 items every six months. Chanel later told the Financial Times that this is not reflective of their current global practices, and that now unsold products go through a recycling business.  The Guardian, citing data from trend forecasting business WGSN, suggested that 10% to 40% of garments made each year are not sold.

Does discarding an item count as destruction?

Yes. Destruction includes intentional damaging, discarding, recycling, and disposal. However, preparing an item for reuse or refurbishment does not count as destruction.

Are there any exceptions to the prohibition?

Yes, in some circumstances there are various exceptions where destruction will be permitted, including where the product is unsafe or poses a health risk. Businesses should still bear in mind that even when an exemption applies there are still specific rules on destruction that should be considered.

What are the consequences?

The ESPR does not set a single EU-wide tariff of fines for breach of the destruction ban. Instead, Member States must introduce penalties that are effective, proportionate and dissuasive. Those penalties may include fines and, potentially, temporary exclusion from public procurement. In practice, businesses should also expect market-surveillance authorities to have powers to require corrective action and to stop non-compliant practices.  France introduced legislation aimed at preventing the destruction of unsold goods in 2020 (effective from 2022) which pre-dates the ESPR and can already lead to financial penalties.

What about the UK?

Firstly, this prohibition from the ESPR applies to Northern Ireland due to the Windsor Framework.

The ESPR applies to any physical goods that are placed on the market or put into service, as such, some UK companies who sell clothing and footwear to the EU market may be affected by this prohibition.

However, within the UK, as of August 2026, there is no UK-wide statutory prohibition currently in force. The government’s Circular Economy Taskforce has plans to publish their Circular Economy Growth Plan, but there is currently no date set for publication.

How can businesses prepare?

Any business selling into the EU and/or Northern Ireland will want to assess its compliance with the ESPR. 

Those steps may include:

• Assessing which of its products are in scope of this prohibition.  Consumer products under the destruction ban are in Annex VII of the ESPR, but EU Member States can add to that list if they wish.
• Training employees.  You will need to make sure that all the relevant teams are aware of the prohibition and the products in scope.  You’ll need to consider the scope of training too – for example you may want to extend it to the staff of host stores where they provide staff for an in-store concession.  
• Record keeping. Do your record keeping procedures on reasons for destruction need an internal review or audit? If you wish to rely on any exemptions, are there clear procedures on recording the reason and supporting evidence?  The EU plans to roll out a new format for reporting in February 2027 too.
• Looking at your production processes.  Are there any current ongoing projects to address overproduction?  Are your suppliers aware of their obligations?
• Looking at alternatives to destruction.  What are some alternatives to destruction that your organisation is currently involved in? Do you have existing relationships with upcycling workshops, charities, or outlet shops?

For further information

You can find out more about the work Punter Southall Law does in brands, retail and fashion at Brand, Retail & Fashion Services.

Please contact Vivien Yanni-Gan, Jonathan Armstrong, John Grayston or Caterina Iodice for more information.