EU and France impose new penalties on ultra‑fast‑fashion retailers

From July 2026 the European Union will ban large companies from destroying unsold clothing, accessories and footwear. The rule applies immediately to firms with more than 250 employees or annual turnover over €50 million, while smaller firms have until 2030 to comply. It requires a Digital Product Passport and annual public reporting of unsold goods, aiming to make textile products more durable, repairable and recyclable.

In parallel, France has approved a law that will levy a progressive financial malus on garments sold by ultra‑fast‑fashion platforms such as Shein, Temu and AliExpress. Effective 1 September 2026, the penalty starts at €9 per jean and can rise to €20 per item by 2030, capped at 50 % of the pre‑tax price. The surcharge is calculated on the volume of clothing placed on the French market and a reparability coefficient. Large French retailers and major international brands like Zara, H&M and Uniqlo are exempt. The revenue will fund collection and recycling infrastructure and promote repair and reuse messages.

Both measures aim to curb the environmental impact of cheap, disposable clothing and shift consumer habits toward more sustainable fashion.