From July 19, 2026, large companies in the EU will be prohibited from destroying certain unsold consumer products. The legal basis is EU Regulation 2024/1781, the Ecodesign for Sustainable Products Regulation, or ESPR. The first product categories affected are clothing, footwear, and textiles.
Who counts as a "large company"?
The definition follows the EU Accounting Directive 2013/34/EU. A company qualifies as large if it exceeds at least two of the following three thresholds:
- more than 250 employees
- more than 50 million euros in annual revenue
- more than 25 million euros in total assets
Small and medium-sized enterprises are initially exempt from the ban on destruction of unsold textiles and clothing.
What does "destruction ban" actually mean?
Large companies will no longer be permitted to destroy certain unsold consumer products. The regulation explicitly refers to “unsold products.” For the affected product categories, disposal will no longer be an option.
Why this matters for ecommerce returns
In ecommerce, unsold inventory doesn’t only come from overproduction or seasonal surplus. Returns also generate stock that can’t always be resold through regular channels.
The regulation targets “unsold products.” In practice, this can include excess inventory from returns or goods that are no longer in sellable condition.
With destruction off the table, companies need to organize alternatives – whether that’s resale, repair, or donation. This goes beyond sustainability strategy. It directly affects operational processes and cost structures.
Looking at France: regulation as a benchmark
France became the first country in the world to fully implement a ban on the destruction of unsold and returned non-food products. The law has been fully in effect since the end of 2023 and covers textiles, electronics, cosmetics, and many other product categories. Instead of disposing of returns and excess inventory, companies must donate, resell, or recycle them.
The trigger was widespread reporting on the mass destruction of as-new returned goods by major platforms. Estimates suggest that products worth 650 to 730 million euros were destroyed annually in France, often because reprocessing was more expensive than disposal.
The French law served as a model for the EU Ecodesign for Sustainable Products Regulation (ESPR), which will prohibit the destruction of unsold textiles by large companies starting July 2026. Together with the withdrawal button, a clear regulatory trend is emerging: consumer protection and sustainability in European ecommerce are being systematically connected.
Where this fits among other 2026 regulations
While the electronic withdrawal button (also effective 2026) governs how returns are initiated, the ban on destruction of unsold textiles addresses what happens to the goods afterward.
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Both regulations operate at different stages of the post-purchase process. The withdrawal button standardizes the entry point for many returns. The ban on destruction of unsold textiles sets limits on how certain unsold products can be handled.
Bottom line
The ESPR regulation introduces new rules for dealing with unsold products. Large ecommerce businesses selling clothing, footwear, or textiles must ensure these products are no longer destroyed from July 2026 onward.
For companies with high return volumes, this raises a practical question: what happens to non-resellable goods when disposal is no longer an option?
The regulation isn’t just about sustainability. It directly affects the economic logic behind returns and remaining stock.
About the author
Nilaxsa Yoganathan is the Co-Founder and CEO of 8returns, a Berlin-based returns management platform helping ecommerce brands turn returns and post-purchase operations into a strategic advantage. Named Capital Magazine’s Top 40 under 40, she has a career rooted in digital product development, platform scalability, and customer-centric commerce systems. A respected voice in the tech and ecommerce communities, Nilaxsa is passionate about sharing best practices on building scalable ecommerce journeys, enabling merchant growth, and elevating industry standards.
Learn more: 8returns.com/book-a-demo
FAQ: EU ban on the destruction of unsold textiles
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The ban starts on July 19, 2026, for large companies in the EU. Its legal basis is Regulation EU 2024/1781, the Ecodesign for Sustainable Products Regulation, or ESPR. The first product categories covered are clothing, footwear and textiles that remain unsold.
A company qualifies as large when it exceeds at least two of three thresholds: more than 250 employees, more than €50 million in annual revenue or more than €25 million in total assets. At least two criteria must be met for the classification described in the article to apply.
The first categories covered are certain unsold clothing, footwear and textiles. The ESPR explicitly refers to unsold consumer products. For these product groups, destruction will no longer be an option. The article therefore describes a defined initial scope rather than a ban covering every product sold online.
No. Small and medium-sized enterprises are initially exempt from the ban on destroying unsold textiles and clothing. The article states that the new obligation applies to large companies from July 19, 2026. Classification depends on whether at least two of the three thresholds for employees, revenue and total assets are exceeded.
They can be. The regulation targets unsold products; in practice, this can include returned goods or items that can no longer be sold through regular channels. In ecommerce, such inventory does not only result from overproduction or seasonal surplus. Returns can also create unsold stock.
Companies need to organise alternatives. The article names resale, repair and donation as examples. The suitable approach depends on the condition of the goods and operational processes. When destruction is no longer available, the impact extends beyond sustainability strategy: it also affects workflows and cost structures.
Yes. France became the first country in the world to fully implement a ban on destroying unsold and returned non-food products. The law has been fully effective since the end of 2023. It covers textiles, electronics, cosmetics and many other categories. Companies must donate, resell or recycle the goods.
Estimates suggest that products worth €650 million to €730 million were destroyed annually in France. The article notes that reprocessing was often more expensive than disposal. Reports about the mass destruction of as-new returned goods by major platforms were a trigger for the French regulation.
The two rules address different stages after a purchase. The electronic withdrawal button standardises the starting point for many returns from 2026. The destruction ban instead limits how certain unsold products can be handled afterwards. For ecommerce businesses, returns processes and remaining inventory therefore need to be considered together.
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