Compliance10 min read

Which returns the EU destruction ban actually covers

CEO & Co-Founder, Opera Garment Solutions

Consumer returns are inside the EU destruction ban. A garment bought online, worn once, boxed and posted back inside the returns window is an unsold consumer product under the ESPR, Regulation (EU) 2024/1781, and since 19 July 2026 a large company may not destroy it.

Article 2(37) names that one kind of return and no other. Stock arriving back from wholesale accounts, from concessions and from customers claiming a fault is not described anywhere in the definition, and where each of those sits turns on the contract the stock moved under.

That leaves a sorting problem at flow level, and a commercial question underneath it that has nothing to do with the Regulation.

The definition the ban runs on

Regulation (EU) 2024/1781, Article 2, point (37):

‘unsold consumer product’ means any consumer product that has not been sold including surplus stock, excess inventory and deadstock and products returned by a consumer on the basis of their right of withdrawal in accordance with Article 9 of Directive 2011/83/EU or, where applicable, during any longer withdrawal period provided by the trader

Two categories sit in that sentence: stock that never sold, spelled out as surplus stock, excess inventory and deadstock, and products returned by a consumer under the right of withdrawal or a longer window the trader offers.

“Consumer product” is defined at point (36) as “any product, excluding components and intermediate products, primarily intended for consumers”. It turns on what the product is intended for, so a dress shipped to a wholesale account is a consumer product too. The open question is whether it has been sold.

Article 25(1) prohibits the destruction of unsold consumer products listed at Annex VII, which the European Commission summarised on 17 July 2026 as apparel, clothing accessories and footwear. The prohibition has applied to large companies since 19 July 2026 and applies to medium-sized enterprises from 19 July 2030, with micro and small enterprises outside it.

Why a worn garment counts as unsold stock

Article 9(1) of Directive 2011/83/EU gives a consumer 14 days to withdraw from a distance or off-premises contract “without giving any reason”. Article 12 sets out what the withdrawal does:

The exercise of the right of withdrawal shall terminate the obligations of the parties: (a) to perform the distance or off-premises contract; or (b) to conclude the distance or off-premises contract, in cases where an offer was made by the consumer.

The contract is unwound. The trader refunds, the goods come back, and the sale is undone in law. What arrives at the returns dock is stock that has not been sold, which is how Article 2(37) treats it. The garment can have been worn and it is still unsold stock for the purposes of the ban.

The window is not a single uniform number across the Union. Article 9(1a) lets member states extend the period to 30 days for contracts concluded during an unsolicited visit to a consumer’s home or a trader-organised excursion. Article 2(37) then follows any longer withdrawal period the trader provides, so a 60-day or 100-day returns policy extends the period the ban runs alongside.

Article 10(1) of the same Directive carries a trap. Where the withdrawal information required by Article 6(1)(h) was not given, the period expires 12 months after the end of the initial one, so a brand in that position has a longer window than its policy states.

Chapter III of the Directive covers distance and off-premises contracts. A purchase made in a brand’s own shop with the customer present is neither, so no Article 9 right attaches. A garment bought online and handed back over a counter is still a distance contract, and in scope. Article 16 removes the right for some goods, including items made to a consumer’s specification or clearly personalised, and sealed goods that are unsuitable for return on health or hygiene grounds once they have been unsealed.

Where a retailer bought stock outright and sent it back under a contractual return right, that return is not described anywhere in Article 2(37). Neither is a garment a customer returns because it is faulty. The word “wholesale” does not decide either case on its own, because it also covers arrangements in which the brand never sold anything.

The Regulation contains no exclusion list. Nothing in Article 2(37), Article 25 or Recital 55 says trade returns are outside the ban. The position rests on the structure of the definition, and that structure is a good argument. Goods returned under the right of withdrawal had, on any ordinary reading, been sold, and the drafters reached them by naming them because “has not been sold” would not have caught them on its own. One kind of return was brought inside a definition that otherwise turns on stock that never sold, and the others were not.

Faulty-goods returns run under a different instrument. Where a garment does not conform to the contract, the consumer’s remedies come from Directive (EU) 2019/771, under which the seller is liable for a lack of conformity that exists at the time the goods were delivered and becomes apparent within two years of that time. That is the legal guarantee, and Article 2(37) names the withdrawal right by article number, so the guarantee route falls outside what the definition describes. A consumer still inside the withdrawal window can rely on either, which means the label a brand’s own system puts on a return does not settle the question by itself.

Where consignment and concession stock sits under the ESPR ban

That reading holds for a firm sale and stops there.

Where a brand supplies a department store on consignment, or trades a concession in which title stays with the brand until a customer buys, the goods were never sold to the retailer. They were made available for sale and did not sell. When that stock comes back at the end of a season it is, on the plain words of Article 2(37), a consumer product that has not been sold, and inside the ban in the brand’s hands.

The sorting question is contractual: did title pass, and did the goods sell. Two pallets arriving on the same day under the same wholesale-returns heading can answer that differently.

Whether goods sold outright and later bought back become unsold again in the brand’s hands is not settled. The Official Journal text does not answer it, and neither do the delegated and implementing regulations or the published legal commentary reviewed for this piece. A brand with an end-of-season return right in its wholesale terms should treat it as an open question for its own counsel.

Article 25(2) closes off routing in-scope stock to an operator that sits outside the ban. Operators not subject to the prohibition “shall not destroy unsold consumer products supplied to them with the purpose of circumventing that prohibition”.

What this changes in a returns operation

The sorting sits at flow level. What decides scope is the contractual arrangement a stream of stock arrives under, which is a property of the agreement and is known before a pallet is opened.

Nothing in the ban requires a brand to classify returns garment by garment. Article 25 prohibits conduct and imposes no record-keeping duty. The disclosure at Article 24 is annual and aggregate, covering the number and weight of unsold consumer products discarded, differentiated per type or category of products, and what a large fashion house publishes under it is a separate exercise. The only item-adjacent record is the file kept when a brand relies on a derogation, retained for five years under Delegated Regulation (EU) 2026/296 and produced within 30 days of a request. Unit-level data beyond that is a brand’s own operational choice.

If your returns process was built around consumer returns from your own online channel, that is a reasonable place for it to have started, because the refund clock runs there. Stock coming back from retail partners arrives on a different schedule and is handled by people who never had a reason to ask which contract it moved under. That question now decides whether destruction is available as a disposition at all, and what counts as destruction reaches recycling and other recovery as well as disposal.

What out-of-scope stock is still worth

A pallet that sits outside Article 2(37) is physically the same pallet it was before anyone read the contract. The garments carry the resale value they had, and the Regulation has nothing to say about that value either way.

The routes for this stock are the ones the trade has used for years. It goes to an inventory jobber for a small fraction of what the garment is worth, or it is written off against margin. Either way the stock is a garment a customer would still buy, disposed of because getting it back to a saleable state is not something the building is set up to do.

Getting stock back to a saleable state is what a recovery process does. A garment coming back from a concession or a wholesale account needs cleaning and conditioning first, which covers stain removal, drying, ironing and final presentation, with repair where the piece needs it. Doing that work in the market where the garment sold uses garment care expertise that already exists there, and it leaves the evidence that stock went to recovery.

Opera Garment Solutions is a single point of access to a network of professional garment care experts. To see what the process does to stock you would otherwise write off, start with a test box at no cost, then a 90-day pilot on one flow, then a conversation about the rest.

Questions about which returns the ban reaches

Does the destruction ban apply to customer returns?

Yes, where the customer returned the goods under the right of withdrawal. Article 2(37) covers “products returned by a consumer on the basis of their right of withdrawal in accordance with Article 9 of Directive 2011/83/EU or, where applicable, during any longer withdrawal period provided by the trader”. Those garments count as unsold consumer products, so since 19 July 2026 a large company may not destroy them.

Does a longer returns window put stock outside the ban?

No. Article 2(37) follows the trader’s own window where it runs longer than the statutory period. A brand offering 60 or 100 days has extended the period the ban applies to its returns.

Are wholesale returns covered by the destruction ban?

Article 2(37) names consumer withdrawal returns and no other kind of return, and the Regulation contains no exclusion list, so the position rests on that construction. Where stock went to a retailer on a firm sale it was sold, and unsold stock in the retailer’s hands is that retailer’s obligation as an economic operator. Where stock sat on consignment or in a concession and title never passed, it was never sold, and it is unsold stock in the brand’s hands. Article 25(2) separately prevents supplying stock to an exempt operator in order to have it destroyed.

Does the ban cover goods a customer sends back because they are faulty?

A return for lack of conformity is made under Directive (EU) 2019/771, the legal guarantee, and not under the Article 9 right of withdrawal that Article 2(37) names. Where an item genuinely cannot be repaired or refurbished, the derogations and the five-year record under Delegated Regulation (EU) 2026/296 are the provisions that deal with it.

Does ESPR require us to track returns item by item?

No. Article 25 prohibits conduct and sets no record-keeping obligation. Article 24 requires an annual disclosure of the number and weight of unsold consumer products discarded, differentiated per type or category of products, published on an easily accessible page of the brand’s website. The only five-year record is the derogation file under Delegated Regulation (EU) 2026/296.

If a return falls outside the ban, can we destroy it?

Article 25 does not reach stock outside the definition, and Article 24 runs on the same definition. Destruction is defined at Article 2(34), and it reaches recycling and other recovery as well as disposal; what counts as destruction sets out the definition in full. Other law may bear on how stock is disposed of, and this piece does not address it.

References

  • European Union. Regulation (EU) 2024/1781 establishing a framework for the setting of ecodesign requirements for sustainable products. Official Journal of the European Union, 28 June 2024.
  • European Union. Directive 2011/83/EU on consumer rights. Official Journal of the European Union, 22 November 2011, consolidated text as at 28 May 2022.
  • European Union. Directive (EU) 2019/771 on certain aspects concerning contracts for the sale of goods. Official Journal of the European Union, 22 May 2019.
  • European Commission. Commission Delegated Regulation (EU) 2026/296 supplementing Regulation (EU) 2024/1781 as regards derogations from the prohibition on the destruction of unsold consumer products. Adopted 9 February 2026, applies from 19 July 2026.
  • European Commission. “Ban on destruction of unsold clothes and shoes enters into application”. 17 July 2026.

( About the author )

Joanna Lambert

CEO & Co-Founder, Opera Garment Solutions

Joanna Lambert is CEO and co-founder of Opera Garment Solutions, which recovers returned, damaged and unsold clothing for fashion brands across the EU and the UK from hubs in the United Kingdom, the Netherlands and Spain. She writes on the EU destruction ban and on what returned stock is worth when it goes back to sale.