The luxury goods section of a department store in Seoul. [Yonhap]
The luxury goods section of a department store in Seoul. [Yonhap]

Large fashion companies operating in EU member states are now banned from destroying unsold clothing, footwear and accessories. The prohibition stems from the EU's Ecodesign for Sustainable Products Regulation (ESPR), introduced in July 2024, with small and medium-sized enterprises granted a four-year grace period before the rules apply to them in 2030.

The EU began enforcing rules Sunday barring large companies from incinerating or landfilling unsold clothing, accessories and footwear, according to the Financial Times and other media. The measures are designed to curb overproduction and reduce waste. Small and medium-sized enterprises will not be subject to the rules until 2030, after a four-year grace period.

Under the regulation, large European companies must resell unsold products through discount stores or alternative markets, or donate them, rather than destroying them. Destruction is permitted only in exceptional circumstances. These include cases where a product poses a safety risk or is damaged, where manufactured goods infringe intellectual property rights, or where a charity or other recipient organization refuses to accept the donation.

To prevent abuse of the exemptions, companies must publish annual reports disclosing the volume of unsold inventory generated and details of any destruction. Authorities in each country may impose fines on companies that violate the rules, and companies must retain relevant records for five years in preparation for regulatory inspections.

Germany's Retail Association (HDE) said the measures are expected to benefit consumers by increasing the supply of discounted goods through outlet stores and secondhand retail channels, and to have a positive effect on the environment, according to the German news agency dpa. "Fewer nearly new garments will be thrown away, and more products will be resold or donated — that will also help the environment," HDE chief Stefan Genth said.

The global apparel industry has long drawn criticism from environmental groups for destroying unsold inventory. According to the European Environment Agency, between roughly 4 and 9 percent of all clothing put on the European market is discarded each year without ever being used, a process that generates approximately 5.6 million metric tons of carbon dioxide annually.

Luxury brands in particular have routinely destroyed unsold seasonal products through incineration and other means to preserve the scarcity and perceived value of their goods. The Financial Times reported that luxury companies that have been incinerating and landfilling large quantities of unsold stock will now have to revise their business strategies as a result of the regulation.


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