Poland Lacks Sanctions for Banning Unsold Clothing Destruction, Despite EU Rule

The European Union's new regulation, ESPR, aims to curb the wasteful practice of destroying unsold clothing, shoes, and accessories. Starting July 19, 2024, this ban will prevent manufacturers from simply discarding excess inventory. Previously, it was often more financially viable for companies to dispose of unsold goods than to reduce production.

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The EU regulation ESPR defines the obligations of entrepreneurs, while detailed issues related to their enforcement and sanctioning will only be indicated in the Polish law.

The regulation, however, faces a hurdle in Poland. Despite the EU regulation being in effect for two years, Poland's Ministry of Development and Technology has not yet drafted national laws to enforce the ban or establish penalties. This delay leaves a significant gap in enforcement, even though the EU ban itself remains legally binding.

Bartosz Piątek, a legal counsel at PwC Legal, noted that while the ban is in place, the absence of Polish laws means there will be no clear legal tools to punish non-compliant entities. The Ministry of Development and Technology stated that the ESPR regulation is directly applicable in all EU member states. For large enterprises, the ban on destroying unsold clothing, accessories, and footwear begins on July 19, 2026. The Ministry emphasized that the lack of complementary national legislation does not suspend the ban, and businesses are legally obligated to comply.

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The EU regulation ESPR has a binding nature in its entirety and is directly applicable in all EU member states from the moment it enters into force, i.e., July 18, 2024.

Companies are required to publicly disclose information about their disposed items, including the quantity and reasons for disposal, starting March 2, 2027. Further regulations detail reporting requirements and record-keeping. Despite these obligations, the lack of immediate penalties in Poland could allow companies to continue their current practices. Approximately 30 large textile companies in Poland reportedly destroy unsold clothing, finding it more economical than adjusting production levels.

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The lack of complementary national legislation in no way suspends or abolishes this ban. Economic entities have a legal obligation to comply with the ban.