As of 19 July 2026, large companies in the European Union are prohibited from destroying unsold clothing, footwear and accessories. The measure, part of Regulation (EU) 2024/1781, aims to curb the estimated 4–9% of textiles discarded before use, generating some 5.6 million tonnes of CO₂ annually. Exceptions apply for damaged, hazardous or non-compliant goods, and for items offered to social enterprises that are not accepted within a set period. From February 2027, firms must publicly report the volume and weight of unsold products they dispose of, along with the reasons and the share sent to reuse, recycling or energy recovery.

Industry reaction in Germany highlights the tension between environmental goals and operational reality. The German Retail Association (HDE) expects the ban to increase discounted goods through outlets and second-hand channels, benefiting consumers, but warns of higher costs for storage, sorting and reconditioning, as well as legal uncertainty around donations. The fashion association GermanFashion supports the rule, noting that most European brands already avoid destroying stock, but argues the real challenge lies with ultra-fast-fashion sold directly by non-EU online platforms, which should share the costs of collection and recycling. A separate textile industry group calls the law bureaucratic and ineffective against fast fashion.

Environmental groups view the ban as a necessary first step but point to enforcement gaps. Greenpeace warns that companies could circumvent the rules by misdeclaring products, and that without rigorous controls the measure risks becoming a “paper tiger”. The WWF similarly stresses that a law is only as good as its implementation. In France, where a national ban on destroying unsold non-food goods already exists, specialist firms such as Reekom near Paris are already revalorising defective garments for resale, demonstrating a practical pathway. Italian consumer association Assoutenti notes that up to 9% of textiles placed on the EU market are destroyed, equivalent to 594,000 tonnes per year, a problem exacerbated by e-commerce return rates of around 20% for clothing.

The next regulatory milestones are the start of mandatory reporting in February 2027 and the extension of the destruction ban to medium-sized enterprises in July 2030. Pressure is mounting to address fast-fashion imports that fall outside the current scope. German industry voices and European policymakers are increasingly calling for extended producer responsibility schemes that would require non-EU sellers to contribute to textile waste management, a debate likely to shape the next phase of EU circular-economy legislation.