EU bans major manufacturers from discarding unsold clothing

Large companies in the European Union can no longer destroy unsold clothing and shoes. A new EU regulation, effective since Sunday, requires these businesses to resell or donate their merchandise rather than discarding it. Companies often find disposal cheaper than storing, processing, or reselling items.

Exceptions exist for goods that are dangerous, damaged, or contaminated, or if they cannot be reused or reprocessed. Items offered as donations to EU-based social enterprises that are not accepted within a specified timeframe may also be disposed of. Smaller businesses will face these new rules at a later date. These regulations are part of the EU's Ecodesign Regulation, which took effect in July 2024.

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Not all unsold goods can be easily resold or donated.

The German Retail Association (HDE) believes the ban could benefit consumers by increasing the availability of discounted goods through outlets, clearance markets, or secondhand channels. HDE's CEO, Stefan Genth, also noted potential environmental advantages, as less new clothing will be destroyed and items will be resold or donated more frequently. However, Genth warned of challenges, stating that not all unsold items can be easily resold or donated due to damaged packaging, high logistics costs, lack of demand, or low value. He also highlighted additional costs for storage, sorting, processing, and remarketing, along with documentation requirements, legal uncertainties, and practical difficulties with donations or secondhand sales.

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Clothing is a valuable product whose destruction should be avoided.

The German Fashion Association (GermanFashion) supports the new regulation, with CEO Thomas Lange emphasizing that clothing is a valuable product whose destruction should be avoided. He sees the ban as a crucial signal for more responsible resource management. Lange added that the rule will likely have little impact on many European clothing companies, as they generally do not destroy unsold stock. The real challenge, he argued, lies with the vast quantities of ultra-fast fashion products ordered by consumers directly from non-European suppliers. Lange called for these companies to be held responsible for the costs of collecting, sorting, and recycling old textiles, similar to European manufacturers.

The Central Association of the German Textile and Fashion Industry criticized the law, calling it out of touch with reality. They argue it burdens the domestic industry with bureaucracy and fails to address the core problems of fast fashion.

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The ban sends an important signal for a more responsible use of resources.