For years, one of luxury's least discussed habits was also one of its most effective. When stock did not sell, some houses destroyed it rather than risk it reappearing at a discount. The logic was about protecting exclusivity; the cost was borne by the environment. In the European Union, that option has now largely closed.
Since 19 July 2026, large companies operating in the EU have been prohibited from destroying unsold clothes, clothing accessories and footwear. Here is what the rule says, where it came from and what it is likely to change.
What the rule says
The ban is one of the first concrete measures under the Ecodesign for Sustainable Products Regulation (ESPR), the EU framework that entered into force in 2024 to make products more durable, repairable and recyclable. In the Commission's words, from 19 July "large companies across the EU are prohibited from destroying unsold clothes, clothing accessories and footwear."
Instead, companies must prioritise keeping products in use. According to the Commission, that means selling them, "including through discounts or alternative markets", donating them to charities or social enterprises, or preparing them for reuse through repair, refurbishment or remanufacture. Where destruction is permitted, it must follow the waste hierarchy, giving priority to recycling.
The legal analysis by the German firm Die Produktkanzlei adds an important detail: "unsold" is defined broadly. It covers surplus and dead stock and also products returned by consumers under their legal right of withdrawal.
Who it covers
The ban applies in stages, based on company size.
- Large enterprises: from 19 July 2026.
- Medium-sized enterprises: from 19 July 2030. Die Produktkanzlei notes these are businesses with up to 250 staff and annual turnover of up to €50 million or a balance sheet of up to €43 million.
- Small and micro enterprises: exempt for now, although the Commission can extend the rules to them by delegated act if there is evidence they are being used to get around the ban, according to HLC.
Separately, large and medium-sized companies that discard unsold consumer products must publish annual data on what they discarded and why, under a parallel transparency obligation described by HLC.
The exemptions
Destruction is not banned in every case. A Commission delegated regulation, which applies from the same date, sets out the circumstances in which it remains allowed. The Commission's summary lists examples: items that are unsafe or damaged, counterfeit or infringing intellectual property rights, or rejected by charities or donation schemes.
These exemptions come with paperwork. Companies relying on them must provide proof such as documents or test results, publish annual reports on what they have discarded, and keep records for five years so that national authorities can inspect them. Authorities can impose fines for breaches, according to the Commission.
Why textiles came first
The Commission explains that textiles are the first product group subject to the ban because of the environmental impact of business models that "often lead to the destruction of unsold goods". Citing the European Environment Agency, it estimates that 4 to 9 per cent of all textile products placed on the European market are destroyed before use, between 264,000 and 594,000 tonnes a year.
Luxury's bonfire problem
Luxury has a particular history here. In 2018 Burberry disclosed that it had destroyed £28.6 million of unsold products the previous year, and £105 million over five years, "to protect its brand and prevent unwanted stock from being sold at knockdown prices", as The Guardian reported. After public criticism, the company announced it would stop the practice and instead "reuse, repair, donate or recycle all unsaleable products". The Guardian described Burberry as the first major company to publicly end the practice. Its chief executive at the time, Marco Gobbetti, said: "Modern luxury means being socially and environmentally responsible."
The same report noted that destroying unsold items was "a common practice among fashion firms", to prevent goods from being stolen or sold cheaply. The EU rule turns what was a voluntary reputational decision into a legal requirement for the largest companies.
France went first
The EU measure follows a national precedent. France's anti-waste and circular economy law, known as AGEC, obliged producers, importers and distributors of new non-food products to reuse, donate or recycle unsold goods rather than destroy them. According to the law firm Osborne Clarke, the rule took effect on 1 January 2022 for products already covered by extended producer responsibility schemes, including clothing textiles, and on 31 December 2023 for other products. For the many luxury houses headquartered in Paris, the principle is therefore not new; what changes is its reach across the single market.
What it could change for luxury
The regulation does not tell houses how to manage their stock, but it narrows the options. Several consequences seem likely, though it is too early for published evidence of their effect.
Tighter production planning. If surplus cannot be destroyed, the most reliable way to avoid it is to make less of it.
More controlled secondary channels. Discount and alternative markets are explicitly allowed. Expect houses to prefer private sales, staff sales and carefully managed outlets that protect pricing.
Growth in repair and reuse. Repair, refurbishment and remanufacture are named routes. That aligns with the after-care and resale services many houses have already launched.
Greater transparency. Annual disclosure of discarded goods will make it easier for journalists, investors and customers to compare companies.
What it means for you
For shoppers, the effect will mostly be invisible. But it reinforces a shift Casadi has followed closely: the idea that a well-made piece should have more than one life. If you are weighing a purchase, the questions the law now asks of companies are worth asking of yourself. Will this be used? Can it be repaired? Would someone else want it after you?
For more on how resale and reuse are reshaping the market, read our guide to which bags hold their value, compare houses with the brand compare tool, and find further reporting in the Journal.