The following article explains the key provisions and outlines the consequences for the economic operators concerned.
I. Background
The European Commission has identified the systematic disposal of unsold consumer products – particularly in the apparel sector – as a significant environmental problem. Destruction results in the waste of raw materials while waste volumes continue to grow. In particular, the fast fashion business model, characterised by excessive production and short product lifespans, is to become economically less attractive. The political basis is provided by the European Green Deal (COM(2019) 640 final) and the EU Strategy for Sustainable and Circular Textiles (COM(2022) 141 final), both of which promote the transition towards circular economy models.
With Regulation (EU) 2024/1781 establishing a framework for the setting of ecodesign requirements for sustainable products (the so-called EU Ecodesign for Sustainable Products Regulation – ESPR), the EU creates legally binding requirements for the destruction of unsold consumer products for the first time. The centrepiece is a prohibition – applicable to so-called “large enterprises” from 19 July 2026 – on the destruction of apparel, clothing accessories and footwear (Art. 25 ESPR). In addition, economic operators are obliged under Art. 24 ESPR to disclose comprehensive data on the disposal of all unsold consumer products.
This article explains the prohibition and outlines the consequences for the affected economic operators.
II. The Prohibition on Destruction under Art. 25 ESPR
1. Scope
Art. 25(1), first subparagraph, ESPR prohibits the destruction of certain unsold consumer products. The products concerned are determined by Annex VII of the ESPR by reference to the commodity codes of the Combined Nomenclature under Regulation (EEC) No 2658/87. All customs tariff headings for apparel, clothing accessories and footwear are covered. A consumer product is “unsold” within the meaning of Art. 2, first subparagraph, no (37) ESPR if it “has not been sold, including surplus goods, excess inventory, and dead stock as well as products returned by a consumer on the basis of their right of withdrawal as laid down in Article 9 of Directive 2011/83/EU or, where applicable, during any longer withdrawal period provided by the trader”.
The prohibition applies to large enterprises from 19 July 2026 – but to medium-sized enterprises only from 19 July 2030. Medium-sized enterprises are those employing up to 250 staff members and having an annual turnover of up to EUR 50 million or a balance sheet total of up to EUR 43 million (Art. 2(1) of the Annex to Recommendation 2003/361/EC). The provision is not applicable to micro and small enterprises for the time being, unless the Commission extends the scope by means of delegated acts (Art. 25(5), second subparagraph, ESPR).
The term “destruction” refers, pursuant to Art. 2, first subparagraph, no (34) ESPR, to “the intentional damaging or disposing of a product as waste, excluding the disposal for the sole purpose of making the discarded product available for preparing for reuse, including refurbishment or remanufacturing”. It therefore covers the activities of recycling, other recovery and disposal as set out in the waste hierarchy under Art. 4(1)(c)–(e) of Directive 2008/98/EC.
2. Derogations from the Prohibition on Destruction
On the basis of Art. 25(5) ESPR in conjunction with Art. 72 ESPR, the Commission has adopted Delegated Regulation (EU) 2026/296, which – like the prohibition on destruction for large enterprises – applies from 19 July 2026. It specifies the grounds for derogation and defines the necessary evidence requirements (Art. 2 Regulation (EU) 2026/296). The evidence must be retained for five years and submitted to the authorities upon request (Art. 3, first sentence, Regulation (EU) 2026/296).
The following derogations are of central importance:
- Health, hygiene and safety reasons: The derogation applies to dangerous products within the meaning of Regulation (EU) 2023/988 (the General Product Safety Regulation — GPSR), i.e. products that do not meet the requirements of Art. 5 GPSR. Risk assessments, correspondence with authorities or technical and chemical test reports serve as evidence.
- Product damage: Destruction is permitted where damage or contamination renders the product objectively unacceptable to consumers and repair is technically excluded or not cost-effective. Repair is considered cost-effective where the cost of repair does not exceed the sum of disposal costs and replacement costs (Art. 1(2) Regulation (EU) 2026/296).
- Legal infringements: Where the product is in breach of Union or national law and destruction is legally required or constitutes an appropriate remedy, this derogation applies. Evidence is provided by means of self-assessment.
- Refusal of donation offers: Destruction is permissible where the product has been offered for donation to at least three non-profit organisations in the EU, or via the company’s website for a period of eight weeks, without any acceptance.
- Lack of suitability for reuse or: Destruction is possible where trademarks or inappropriate design features cannot technically be removed, or where a waste treatment facility has been unable to find a buyer after preparation for reuse has taken place. This must be substantiated by technical expert opinions or external audit reports.
- Infringement of intellectual property rights: For counterfeit products or upon expiry of licence agreements, destruction is permissible provided that proportionality is documented.
III. Disclosure Obligation under Art. 24 ESPR
In addition to the prohibition on destruction, Art. 24 ESPR establishes a comprehensive disclosure obligation. Economic operators that discard unsold consumer products themselves or have them discarded by third parties must disclose detailed information on an annual basis. The addressees are large enterprises from the entry into force of the ESPR (18 July 2024) and medium-sized enterprises from 19 July 2030.
This obligation covers all unsold consumer products, meaning “any product, with the exception of components and intermediate products, that is primarily intended for consumers” (Art. 2, first subparagraph, point (36) ESPR). The disclosure obligation therefore does not apply only to destroyed clothing, clothing accessories and footwear, but to all products intended for consumers.
1. Content of the Disclosure Obligation
Pursuant to Art. 24(1), first subparagraph, points (a)-(d) ESPR, the following data must be published:
- The number and weight of unsold consumer products discarded
- The reasons for discarding products
- The waste treatment operations applied (differentiated by preparation for reuse, recycling, other recovery and disposal)
- Measures taken and measures planned to prevent destruction
Disclosure takes place on an annual basis on an easily accessible page of their website, or alternatively in the sustainability report pursuant to Art. 19a or Art. 29a of Directive 2013/34/EU (Art. 24(1), second subparagraph, first sentence, ESPR).
2. Implementing Regulation (EU) 2026/2 and Mandatory Format
Regulation (EU) 2026/2 specifies the modalities of disclosure and establishes a uniform presentation format in Annex I. This format becomes mandatory for disclosure purposes from 2 March 2027 (Art. 7 Regulation (EU) 2026/2). Although the disclosure obligations for large enterprises have been in force since 18 July 2024, organisations may already align their reporting with the requirements of the Implementing Regulation.
The format comprises three segments: company details and reporting period, detailed product data (product category by CN code, product description, number of units, mass, reasons for discarding, waste treatment operations), and prevention measures.
IV. Practical Implications
The new requirements confront affected companies with considerable challenges. Economic operators in the textile and footwear sector must fundamentally rethink their disposal strategies. Key tasks include the identification of unsold consumer products, the assessment of applicable derogations, and the provision of the required supporting documentation. It is advisable to implement a quality assessment procedure that records visual inspections, damage catalogues and destruction thresholds. In addition, internal systems for the structured collection and processing of data must be established.
Responsibility for the enforcement of the ESPR rests with the national market surveillance authorities. The German Ecodesign Act (Ökodesign-Gesetz – ÖkodesignG) provides for fines of up to EUR 10,000 for infringements of Art. 24 ESPR. Infringements of Art. 25 ESPR may result in fines of up to EUR 100,000.
V. Outlook
With the prohibition on the destruction of apparel and footwear and the accompanying disclosure obligation, the ESPR sends a clear signal against the waste of resources. Economic operators should promptly develop prevention strategies, adapt their documentation systems and prepare for the mandatory use of the standardised disclosure format from 2 March 2027. Which additional product categories will in future be subject to the prohibition on destruction remains to be seen.
In addition to the prohibition on destruction, the textile sector is expected to face further comprehensive changes through the implementation of a product-specific delegated act under the ESPR. This delegated act is expected to establish ecodesign requirements for textiles addressing aspects such as material efficiency, extension of product lifetime, reduction of impacts on water, waste generation, energy consumption and climate change; a Digital Product Passport (DPP) will also be introduced for textiles. The adoption of the delegated act is planned for 2027. The information requirements under the ESPR will take effect in conjunction with the Textile Labelling Regulation, which is currently under revision (COM(2025) 187 final, p. 6).
Do you have any questions about this news item or would you like to discuss it with the author? Please feel free to contact: Marie Carnap, LL.M and Dr Carsten Schucht.
