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 destruction ban.
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.
Where this fits among other 2026 regulations
While the electronic withdrawal button (also effective 2026) governs how returns are initiated, the destruction ban addresses what happens to the goods afterward.
Both regulations operate at different stages of the post-purchase process.
The withdrawal button standardizes the entry point for many returns.
The destruction ban 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.
