New EU Rules Ban the Destruction of Unsold Apparel
What Fashion Companies Need to Know
As of 19 July 2026, a major change for the European fashion industry has officially come into effect. Under the EU Ecodesign for Sustainable Products Regulation (ESPR) – Regulation (EU) 2024/1781, large textile and fashion companies are no longer allowed to destroy unsold apparel, footwear and accessories.
The new rules represent another important milestone in the European Union’s transition toward a circular economy, encouraging businesses to extend product lifecycles, reduce waste and increase transparency in the management of unsold inventory.
Large companies operating in the textile and fashion sector can no longer dispose of unsold or returned products by destroying them. Instead, businesses are expected to prioritize solutions that keep products in circulation, including:
- resale through alternative channels;
- redistribution;
- donation to non-profit organizations or educational institutions;
- reuse;
- repair and refurbishment;
- recycling when reuse is no longer possible.
The regulation also introduces new reporting obligations aimed at increasing corporate transparency.
Companies that dispose of unsold consumer products must publicly disclose detailed information, including:
- the number and total weight of products discarded each year, broken down by product category;
- the reasons why products were discarded;
- the percentage of products sent to reuse, refurbishment, remanufacturing, recycling, energy recovery or disposal;
- the measures already implemented and those planned to prevent the destruction of unsold goods.
These disclosure requirements are designed to improve accountability and encourage companies to adopt more sustainable inventory management practices.
Why This Matters
The fashion industry has long struggled with excess inventory. Seasonal collections, demand uncertainty and high return rates, particularly in e-commerce, often leave brands with significant volumes of unsold merchandise.
According to estimates referenced by consumer association Assoutenti:
- up to 9% of textile products placed on the European market are destroyed before ever being used;
- this represents up to 594,000 tonnes of textiles every year;
- the associated environmental impact is estimated at 5.6 million tonnes of CO₂ emissions annually;
- online fashion purchases have an average return rate of around 20%, meaning approximately one in five garments purchased online is sent back.
These figures highlight why the European Commission considers unsold inventory management a key component of its Circular Economy Action Plan.
For fashion companies, the regulation is not only about complying with new legal requirements, it also requires a shift in how surplus inventory is managed. Instead of viewing unsold products as waste, businesses are encouraged to maximize their value by giving them a second life through redistribution, resale, donation or recycling. Achieving this requires greater collaboration across the supply chain, involving brands, suppliers, retailers, logistics providers, charities, recyclers and other ecosystem partners.
B/SAMPLY connects brands, suppliers and organizations through a shared digital platform, companies can give surplus materials and products a second life, reduce waste and support compliance with evolving European regulations.