Key Takeaways

• What Happened? The European Commission adopted a ban prohibiting certain businesses from destroying unsold apparel, clothing accessories, and footwear. On February 9, 2026, the European Commission adopted supplemental regulations regarding the exceptions to the ban on the destruction of unsold apparel consumer products established by the Ecodesign for Sustainable Products Regulation (ESPR).
• Who Is Impacted? Large and medium-sized companies that directly discard unsold consumer products or have them discarded on their behalf.
• What Will Be Required? Impacted businesses are prohibited from discarding unsold apparel-related consumer products unless certain exceptions apply, must file certain disclosures, and must maintain records.
• Next Steps: Determine whether you are in scope for the ESPR’s ban (including whether goods qualify for an exception) and disclosure obligations. Identify any disposal procedures and ensure proper reporting, documentation, and recordkeeping. Keep an eye out for potential future additions to the ban list.

Background

In July 2024, the European Commission adopted the ESPR. This regulation created a framework to further advance the Commission’s sustainability goals. This framework included disclosure requirements and a ban on the disposal of certain unsold consumer goods. In July 2026, the regulations will apply broadly to many businesses in the EU. The Commission recently adopted additional regulations that clarify details of the ban as well as related disclosure requirements, which collect data from EU businesses on their product waste practices.

Who and What is Impacted

The regulations apply to “economic operators,” and enterprises that are large or medium-sized. An entity is an economic operator if it is a manufacturer, authorized representative, importer, distributor, dealer, or fulfilment service provider of a consumer product. Any large or medium-sized company, employing more than fifty (50) people with an annual turnover exceeding EUR 10 million, is impacted. Micro and small companies, enterprises that employ fewer than fifty (50) people and have an annual turnover not exceeding EUR 10 million, are exempt from these requirements.

The ESPR applies to “consumer products,” meaning any product, excluding components and intermediate products, that is primarily intended for consumers. An “unsold consumer product,” is any consumer product that has not been sold, which includes surplus stock, excess inventory and deadstock, and products returned by the consumer where applicable.

Ban on Destruction of Unsold Apparel, Clothing Accessories, and Footwear

In 2022, when the ESPR was a proposed measure, the Commission noted its intention to ban the destruction of unsold goods. That time has now come for many businesses. The supplemental regulation goes into effect on July 19, 2026, and will impact large businesses. Medium-sized businesses continue to have a delayed start date on July 19, 2030. Moreover, this ban comes on the heels of additional EPR rules for managing textile waste.

The ban prohibits the disposal of unsold consumer goods, unless an exception applies. The ban currently impacts consumer goods such as:

• Articles of apparel and clothing accessories of various materials, including leather.
• Hats and other headgear made of various materials, whether lined or trimmed.
• Footwear made of various materials including leather, rubber, plastics or other textile materials.

Article 5 of the supplemental regulation indicates that the Commission expects to add new products to the ban list in the future.

There are several notable exceptions to the ban. To qualify for an exception, there must be adequate documentation to verify applicability. The list of exceptions includes products that:

• are dangerous products within the meaning of the General Product Safety Regulation;
• are required to be destroyed by law due to legal non-compliance (national or EU law);
• infringe on intellectual property (IP) rights;
• are unsuitable for reuse/remanufacturing due to technical inability to remove IP-protected or inappropriate characteristics;
• are unacceptable for consumer use due to damage, deterioration, or contamination, including hygiene concerns;
• are unfit for intended use and repair is not technically feasible;
• do not have a located recipient; or
• have been unable to be donated for at least eight (8) weeks.

Donations

The Commission lays out several exemptions and specific rules regarding donations to ensure that the regulations do not discourage or restrict donations. For disclosure requirements, donated consumer products are exempt and do not need to be disclosed.

Regarding the ban, the donation exception allows businesses to discard unsold products that they are unable to donate. This exception is a last resort option and may only apply once businesses exhaust all other options. If a business wishes to use the donation exception, it must offer sufficient evidence that the donation was offered and failed to be received for at least eight weeks. If the business that received the donation is unable to locate a recipient, they must create a declaration as evidence and maintain it in their records for five (5) years.

Disclosure Requirements

The Commission recently adopted implementing regulations that establish the details and format for the disclosures mandated under the ESPR, which exist in tandem with the ban. The disclosures must include:

• The number and weight of unsold products discarded during the previous financial year.
• The (legitimate) reason for discarding unsold products. Legitimate reasons include concerns regarding safety or hygiene; protection of intellectual property rights; or situations where destruction or phasing out of certain products is required by law.
• If applicable, any relevant exceptions provided by the rules.
• If applicable, the proportion of discarded products that are delivered to undergo waste treatment options.
• If applicable, any measures planned and/or taken to prevent the destruction of the unsold products.

Annex II to the regulations lists the product categories subject to the disclosure requirements. The new regulations clarify the available exceptions and provide a sample disclosure form that businesses must use as the format for their disclosures. Additionally, the rules provide a list of 4-digit CN codes for various consumer products to be used in disclosures. If the products are merely components, intermediate products, or not primarily intended for consumers, they are exempt from the disclosure requirements.

Large companies are already required to provide these disclosures, as the Commission clarified. The new format requirements apply to them from March 2, 2027. Medium-sized companies have more time; the disclosure rules will not apply until July 19, 2030. The disclosures will be due within 12 months after the end of that financial year.

Obligation to Keep Information

Businesses and manufacturers are further required to maintain records regarding the disposal of unsold consumer products. According to the newly implemented regulation, economic operators are required to keep any information and documents necessary to demonstrate the delivery and reception of discarded unsold consumer products for five years after initial disclosure. Required records include statements on the receipt and treatment of discarded unsold consumer goods that a business receives from a waste treatment operator. 

Compliance Deadlines

Large companies will be prohibited from discarding unsold apparel and footwear on July 19, 2026. They must properly disclose any unsold product that qualifies for an exception from the ban, and maintain relevant documentation for five years. Medium-sized companies will have the same requirements but will not be required to comply until July 19, 2030. All businesses that discard unsold consumer goods should keep an eye on any future additions to the ban list.

Beveridge & Diamond’s Consumer Products and Product Stewardship, Global Supply Chains practices counsel U.S. and multinational companies that manufacture, distribute, transport, or sell consumer goods in today’s fast-paced and evolving marketplace. Our Apparel and Textiles practice supports companies in the textiles and fashion sectors with a broad range of global environmental and sustainability challenges. Drawing on our deep experience and insights from adjacent industries—including plastics, waste & recycling, and international environmental law—we provide clients with comprehensive guidance on environmental, health, and safety matters. For more information on this development, please contact the author(s).