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Fashion Brands Lose the Right to Burn Their Unsold Stock This July

Prato: In the Tuscan town that has recycled wool for more than a century, the idea that a retailer might incinerate perfectly wearable clothes has always seemed like waste dressed up as efficiency. From 19 July, that practice becomes illegal across the European Union, as the ban on destroying unsold consumer goods written into the Ecodesign for Sustainable Products Regulation takes effect for clothing and footwear.

The ban is the most tangible of several circular-economy rules converging this summer. The same date brings the first phase of the digital product passport, a machine-readable record meant to travel with a product and tell buyers, repairers and recyclers what a garment is made of and how to handle it at end of life. Together the measures attack a simple statistic that has embarrassed the sector for years: a large share of textiles placed on the EU market is never worn out, only thrown out.

Running alongside is the right-to-repair directive, which member states must transpose into national law by 31 July. Its current scope covers appliances and electronics rather than clothing, but the Commission has signalled it intends to widen the rules toward furniture, tyres and textiles, pulling more of the economy into a model where mending is the default rather than a hobbyist’s choice. The direction of travel is unmistakable even where the legal text has not yet caught up.

For brands, the compliance burden is real and front-loaded. Tracking what goes unsold, documenting material composition for the passport, and rerouting deadstock to resale, donation or recycling all demand systems many retailers have never built. Smaller labels warn that the administrative weight could fall hardest on them, while larger groups with existing supply-chain data may absorb it more easily, an irony for rules meant partly to level the field.

The deeper tension is between the regulation’s logic and the business model of fast fashion itself. The system depends on producing far more than will sell, treating overstock as the cost of always having the right size on the shelf. Forcing firms to keep, repair or recycle what they cannot sell raises the price of overproduction, which is precisely the point. Whether that nudges volumes down or simply shifts costs onto consumers will become clearer once the first reporting cycles arrive.

For a place like Prato, whose recyclers have long taken in Europe’s cast-offs, the rules could mean more feedstock and more legitimacy for an industry that operated in fast fashion’s shadow. The wider EU bet is that designing waste out at the start is cheaper than managing it at the end. July is when that bet stops being a strategy document and starts being law.