Effective July 2026, new EU regulations prohibit large companies from destroying unsold clothing and footwear. The directive creates opportunities for reuse and establishes enhanced transparency obligations for producers. Large businesses must now report on unsold inventory and implement alternative disposition strategies such as donation, resale, or recycling rather than destruction. The regulation strengthens producer responsibility by requiring companies to demonstrate compliance with reuse and circular economy principles. This measure applies to all producers placing textiles on the EU market and represents a significant shift in extended producer responsibility for the fashion and textile sector.