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For a long time, unsold items have been cheaper to destroy instead of keeping in a warehouse. The easiest way for surplus stocks was to destroy the items—it was also the easiest way to protect brand value or clear warehouse space. As of 19 July 2026, that escape hatch is officially being closed by the EU.
This isn't just a sustainability goal. it’s a legal requirement that changes how you plan, buy, and track every single garment. Here is the breakdown of what is actually happening.
1. Who is affected and when?
- Large Companies: The ban starts 19 July 2026.
- Medium-Sized Companies: You have until 19 July 2030 to comply.
- Small/Micro Enterprises: Currently exempt from the ban and reporting.
- The Reach: If you sell in the EU, these rules apply to you, regardless of where your headquarters are located
2. The New Compliance Reality
It’s no longer enough to just stop destroying stock; you have to prove what happened to it. Starting in February 2027, companies will have to publicly disclose:
- The exact number and weight of unsold products discarded.
- The specific reasons for disposal.
- The percentage of goods sent for reuse, repair, or recycling.
Essentially, "unsold stock" is about to become a public KPI that your customers and investors will be watching.
3. Are there any exceptions?
Destruction is only allowed in very specific, documented cases, such as:
- Health & Safety: Products contaminated with banned chemicals (like PFAS).
- Unsalvageable Damage: Items damaged in transit that cannot be repaired.
- The "Three Strikes" Rule: If you’ve offered the stock to at least three donation entities or listed it on your site for eight weeks and nobody took it.
- Legal Barriers: Products held up by IP rights or other legal non-compliance.
4. How to prepare your operations
To stay on the right side of these rules, brands need to shift from "disposal" to "data."
- Better Forecasting: Overproduction is now a legal liability. You need real-time data to prevent "just in case" ordering.
- Circular Models: It’s time to look seriously at resale ("pre-loved") platforms and repair services.
- Traceability: You can’t report on what you don't track. Your system needs to follow an item from the factory floor to its final destination.
The Advantage of Moving Early
The brands that thrive under these new rules will be the ones that stop guessing. By centralizing your POs and logistics data, you can buy tighter, react faster to market changes, and ensure you never have a "mountain of surplus" to deal with in the first place.
Vintly helps you bridge the gap between production and compliance, giving you the transparency you need to navigate these new EU regulations. If you want to make sure your team is ready for 2026, follow this link to get in touch with our sales team.
