EU ban on destroying unsold fashion takes effect

The European Union has implemented a ban preventing major fashion groups — including LVMH, Prada, Chanel and Inditex — from destroying unsold clothes and footwear as part of the bloc's mission to curb waste of goods and the resources used to make them.

The rules, which take effect immediately, seek to force fashion giants to resell, repurpose or donate returns and overproduction, steering producers away from incineration and landfill.

The EU estimates up to 9 percent of clothing is incinerated unworn, with little recycled and much sent to landfills, and says destroying unsold stock in Europe emits about 5.6 million tons of carbon dioxide a year.

The new ban forbids destruction — and exporting garments to be destroyed — and it will be up to authorities in each member state to police and sanction those who don't comply.

Medium-sized companies will be subject to the same ban from 2030, while small and micro-businesses are exempt.

The European Commission has noted that when new, usable goods are discarded, the raw materials, water, energy and labor invested in their production are lost, while their disposal generates avoidable greenhouse gas emissions.

It claims that by encouraging reuse, repair and more resource-efficient business practices, the new rules support the transition to a more circular and competitive European economy.

The ban is particularly sensitive for luxury fashion groups because it removes a tool for preserving desirability by engineering scarcity, reported the Financial Times.

Luxury-goods analyst Luca Solca, of Bernstein, said: "The new rules will lead companies to pay even closer attention to planning and inventory management."

"That said, no one can work miracles: apparel brands in particular will inevitably be left with some end-of-season stock. This is unavoidable ... so I also expect companies to make a greater effort to manage off-price sales in a way that preserves quality."

Industry executives and analysts told the FT the rules may speed up the use of artificial intelligence to track inventories in real time, predict demand, and more tightly coordinate stock across stores and warehouses.

According to Giulia Iuticone, a Milan-based partner with the executive search firm Heidrick &Struggles, the rules would "redefine how companies make decisions ... if unsold stock can no longer serve as a safety valve, the quality of planning becomes a competitive advantage."

The new rules require businesses to keep products in use by selling them, including via discounts or secondary markets, or donating them to charities or social enterprises, or preparing them for reuse through repair, refurbishment or remanufacture.

According to the EU, destruction will be permitted only in limited cases and must be carried out in line with the bloc's legally defined waste-treatment hierarchy, giving priority to recycling.

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