EU regulation bans large companies from destroying unsold fashion

Exceptions to the destruction obligation

Disposal of the goods is only permitted under certain circumstances, such as if they have been damaged. Exceptions apply, however, in cases where the goods are dangerous, damaged or soiled, or cannot be reused or reprocessed. Items that have been offered as donations to several social economy organisations based in the EU but were not accepted within a deadline may also be destroyed.

The German Retail Federation (Handelsverband Deutschland, HDE) reacted cautiously to the new rules. President Stefan Genth pointed out that retailers would face a significant additional burden. The association stated that the new regulation could lead to an increase in the supply of discounted goods. In the future, retailers would have to organise the logistics, storage and remarketing of unsold inventory.

Reactions from the retail sector

Genth also warned that the additional obligations would be particularly noticeable for medium-sized fashion houses. Thomas Lange, also at the HDE, added that the industry needed practicable solutions to handle donations, resale and recycling efficiently. Otherwise, there was a risk of a rise in operating costs that could be passed on to consumers.

The EU Commission justified the move with the growing ecological footprint of the textile industry. Fashion chains frequently produce more goods than are actually sold and destroy surpluses in order to keep prices high. The regulation is intended to put a stop to this business model and increase the pressure on manufacturers to align production volumes more closely with actual demand.

Outlook: Controls and consequences

For smaller companies, the new requirements will not take effect until 2030. The Commission wants to prevent small and medium-sized retailers, which often lack professional structures for donations or recycling, from being overwhelmed by the obligations. In the meantime, digital platforms and collection points are to be set up through which unsold goods can be passed on more easily.

The regulation complements a series of other EU measures aimed at greater sustainability in the textile industry. These include stricter requirements for the durability of clothing, the labelling of materials and the recyclability of fibres. Environmental organisations such as WWF welcomed the new rules, but demanded that the exceptions be interpreted narrowly and consistently monitored.

It remains unclear how the national authorities will monitor compliance. The regulation provides for sanctions, the amount and form of which still have to be decided by the EU member states. Observers expect that the first fines could be imposed at the earliest at the beginning of 2027, once the national authorities have set up their control systems.

This news was broadcast on 19.07.2026 on Deutschlandfunk. The station reported in the morning on the entry into force of the regulation and the reactions from the German retail sector. Other European media also picked up on the topic, as the regulation applies directly to all major fashion providers based in the EU.