EU Bans Destruction of Unsold Clothes; Retailers Face Fines

A new EU-wide ban prohibits retailers from destroying unsold clothing, accessories, and footwear, with fines reaching up to 10,000 euros for violations. This regulation aims to curb textile waste by preventing the burning or landfilling of new, unworn items.

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And retailers, suppliers, manufacturers, and importers – this really affects a larger scale of companies.

The ban affects a broad spectrum of businesses, including manufacturers, suppliers, importers, and retailers. In Lithuania, penalties for non-compliance range from 1,000 to 5,000 euros, escalating to 10,000 euros for persistent offenders. Despite these penalties, Lithuanian companies believe the impact on their operations will be manageable.

"Utenos trikotažas" General Director Nomeda Kaučikienė stated that the company strives to produce minimal excess stock, selling any remaining items through in-store promotions. Similarly, "Audimas Brand" General Director Daiva Šulienė explained their partnership with organizations that collect branded clothing in exchange for symbolic discounts. These collected items are then prepared for reuse or reprocessing into raw materials.

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We try to produce just enough so that there are really few leftovers, and of course, we cannot do without them at all. If we have them, we sell them very successfully through promotions in our stores.

The European Commission has made exceptions for textile products deemed hazardous due to safety requirements, intellectual property infringements, or damage. However, companies must meticulously document and test such items to prove all other disposal methods were exhausted. These records must be maintained for at least five years. Information on destroyed textiles must also be published annually on company websites.

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As of today, we have partners with whom we collect our brand's clothes together. We provide a symbolic discount in return, and then we hand them over to our partners, who then prepare the clothes for secondary use, recycle them into raw materials, and so on.

Details on the law's full implementation remain unclear, with many provisions expected to evolve in practice. Lithuania reportedly exceeds the EU average for textile waste, discarding over 17 kilograms per capita annually, compared to the EU's average of 12 kilograms. Approximately 5 million tons of clothing and footwear are discarded across the EU each year.

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In such cases, they can be destroyed, but companies must document and conduct tests and research, documents, evidence that, for example, all measures have been exhausted. They must keep those documents for at least five years.