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Our team advises brands, retailers and investors on ESG, compliance and regulatory strategy across both the EU and UK. Please contact us if you would like to discuss the implications of these developments for your business.
The fashion industry faces a rapidly tightening sustainability rulebook across the EU and UK, with major implications for product design, stock management, marketing, packaging and supply chains. This note provides an update on key developments at an EU level, as well as considering perspectives from France, German, Spain and the UK, including an update on the recently adopted French law targeting “ultra-fast fashion”. These developments are set to have a direct and lasting impact on fashion businesses.
On 8 July 2026, the French Parliament adopted the long‑awaited Law Aimed at Reducing the Environmental Impact of the Textile Industry (the Ultra‑Fast Fashion Act, “UFFA”).
Ultra‑fast fashion practices caught by the UFFA are those of a “producer” within the meaning of extended producer responsibility (“EPR”) principles (see further the section on EPR below). Entities established in the EU fall outside the scope of the new rules, save in specific circumstances.
Ultra‑fast fashion practices are defined by reference to two cumulative criteria: (i) the breadth of the new textile product range offered, in particular the volume of garments placed on the market, and (ii) the low level of incentive to repair these products. The methodology for assessing these criteria will be specified in a Decree.
The UFFA provides that EPR fees paid by producers engaging in ultra‑fast fashion practices must be subject to upward adjustments. These adjustments will increase each year until 2030, when they will reach a range of between EUR 2 and EUR 20 per product, without exceeding 50% of the product price if the producer so requests. This is expected to significantly increase the consumer price of ultra‑fast fashion products.
The UFFA introduces an absolute ban on advertising for ultra‑fast fashion products or brands with effect from 1 January 2027. The use of the term “free” is also prohibited in relation to those products. Influencers are likewise prohibited from carrying out any form of advertising or promotion for ultra‑fast fashion products.
The intention of the legislator is to target a small number of non‑European online platforms achieving very high sales volumes in France. Other EU‑based online fashion retailers are, for the time being, left outside the scope of the regime. However, given the environmental challenges posed by textile waste, a further tightening of the legal framework cannot be ruled out in the future.
From 19 July 2026 the Ecodesign for Sustainable Products Regulation (EU) 2024/1781 (ESPR) introduces an outright ban on the destruction of certain categories of unsold consumer goods, including both apparel and footwear. Significantly, the EU Commission has published Frequently Asked Questions which confirm that the ban on destruction includes recycling operations meaning that businesses may need to explore new approaches to dealing with unsold stock.
The ban is deferred to 19 July 2030 for businesses qualifying as “medium-sized” and micro and small enterprises are generally exempt, recognising the disproportionate burden it could place on smaller businesses. Further, there are limited derogations to the ban, such as where products pose health or safety risks, infringe intellectual property rights or are irreparably damaged. Any destruction permitted under these exceptions must be documented and retained for 10 years.
In addition to the specific ban on the destruction of apparel and footwear, for all types of consumer products ESPR requires businesses to publicly report on:
This information must be made publicly available, for example through a sustainability report on the company website, and the requirement applies in respect of the first full financial year after 18 July 2024 (the date of entry into force). For example, if a company has a calendar financial year then the first disclosures required will be in respect of the year 2025 and published in 2026. The reporting requirements are deferred by six years for companies qualifying as medium-sized, and small and micro-sized organisations are exempt.
Fashion companies will need to put in place stronger stock management systems and proactive strategies to reduce overproduction with donation, resale and reuse will becoming more important. Businesses should also be mindful of the reputational impact of disclosure, as consumers and stakeholders will be able to scrutinise waste practices more closely.
The Packaging and Packaging Waste Regulation (EU) 2025/40 (PPWR), which repeals and replaces the existing Packaging and Packaging Waste Directive (94/62/EC), becomes applicable from 12 August 2026. PPWR will regulate all aspects of the packaging lifecycle, aiming to reduce the adverse impacts of packaging and packaging waste on the environment and human health. Many aspects of PPWR will apply to packaging placed on the market in Northern Ireland as a result of the Windsor Framework.
The provisions applicable from 12 August 2026 include a requirement on packaging manufacturers (generally being the brand owner identified on the packaging) to issue a Declaration of Conformity (DoC) as well as comply with certain labelling and identification provisions. Many other PPWR provisions will only become applicable on a staggered basis and are dependent on the adoption of delegated and implementing acts.
In March, the Commission published a Guidance document and a Frequently Asked Questions document providing further guidance on key points relevant to the 12 August 2026 deadline including:
From 27 September 2026 Member States will be required to apply new rules on green claims as provided for by the Empowering Consumers for the Green Transition Directive (EU) 2024/825 (ECGT). While greenwashing is already prohibited under general consumer protection principles, ECGT provides specific rules targeting certain problematic practices including:
A key question for many companies has been the impact on old and existing stock bearing green claims that has already been manufactured but that may not have been sold through by 27 September. While ECGT does not provide for a formal grace period in this situation, in June 2026 the Consumer Protection Cooperation (CPC) authorities agreed on a “Common Understanding” providing for a set of principles for authorities to follow with the intention of ensuring that a consistent and pragmatic approach is taken to enforcement in these circumstances. The principles aim to ensure that authorities do not impose measures that would create disproportionate costs or unnecessary environmental harm (which could arise, for example, as a result of the destruction and disposal of already manufactured products bearing non-compliant claims).
To the extent not already doing so, our recommendation is that businesses urgently audit the green claims that they are currently using, including reviewing the underlying evidence relied upon to substantiate those claims, to determine what actions, if any, they need to take to update or remove claims before the September deadline.
Germany has very active watchdogs when it comes to green claims, including consumer organisations and organisations focussed on the protection of nature and the environment. Green claims which are not compliant establish an act of unfair competition which can be enforced by a variety of potential claimants, including consumer organisations, organisations for the protection of fair competition, and competitors. In particular, organisations for the protection of nature and environment are at the forefront of enforcement and usually attract a lot of attention for the cases they are bringing, meaning that a PR risk is added to the legal risk in case of non-compliance and comes on top of potential action by supervisory authorities.
While the ECGT imposes certain further requirements for the permissibility of green claims, the prohibition on greenwashing is not new, so to some extent, the ECGT is only a clarification of the status quo.
The twice-delayed EU Deforestation Regulation (EU) 2023/1115 is set to impose due diligence obligations in respect of in-scope products that are imported, exported or made available on the EU and Northern Ireland markets from 30 December 2026 (or 30 June 2027 for micro and small enterprises). Following the adoption of a proposal at the end of 2025 to streamline the regime, and the finalisation of the Commission’s simplification review in May 2026, the administrative requirements under the regime now look very different to those included in the original Regulation text. Importantly, under the simplified regime, only the upstream “operator” is required to exercise due diligence and submit a due diligence statement via the Information System with “downstream operators” and “traders” benefiting from reduced requirements.
Further, in June 2026 the UK government released a long-awaited update on the UK’s proposed approach to deforestation regulations, confirming that it will introduce regulations under the Forest Risk Commodities provisions of the Environment Act 2021. These rules will require businesses in Great Britain with an annual turnover above £1m to carry out due diligence to ensure their products have not been produced as a result of illegal deforestation. The GB regime is intended to capture the same commodities as EUDR (i.e. wood, cattle, cocoa, coffee, palm oil, rubber, soy), but notably will be designed to target illegal deforestation in supply chains (i.e. non-compliance with local laws in the country of production) rather than imposing the full deforestation free standard required under EUDR.
The EU Forced Labour Regulation (EU) 2024/3015 will become applicable from 14 December 2027 prohibiting the placing on the market and export of products made with forced labour. The Regulation applies to all products, regardless of their origin, and to all companies that either place on the EU market or export, regardless of their size (i.e. there is no exemption for SMEs). The Commission published its Guidelines accompanying the Regulation at the end of June.
In addition to the prohibition, the Regulation creates an investigations framework under which the EU Commission can investigate cases involving forced labour outside of the EU and national authorities can investigate cases within their own territories. Authorities will focus on the highest-risk cases, prioritising high-risk products and geographic areas. Where an investigation identifies forced labour, the result will be a formal decision to ban the associated product from the EU market.
While the Regulation does not require companies to undertake mandatory human rights due diligence (unlike, for example, the Corporate Sustainability Due Diligence Directive), due diligence will be an important tool for companies whose products are subject to investigation to demonstrate the steps that they have taken to ensure their products are free from forced labour.
At the end of 2025, the EU adopted new rules requiring Member States to establish mandatory extended producer responsibility (EPR) schemes for textiles and footwear by 17 April 2028. The rules have been introduced through a targeted amendment to the Waste Framework Directive (2008/98/EC).
Under the schemes to be adopted in each Member State, “producers” will be required to register in each Member State in which they place products on the market, and then pay fees to finance the collection, sorting, preparing for reuse and recycling of garments and shoes, as well as the disposal of associated waste.
Producer fees will be based on the volume or quantity of textiles and footwear placed on the market in a given Member State. Eco-modulation will allow EPR fees to be adjusted according to performance against certain sustainability criteria, such as durability and recyclability, to be adopted under the Ecodesign for Sustainable Products Regulation framework.
Micro enterprises (fewer than 10 employees and annual turnover and balance sheet below EUR 2 million) will be provided with an additional 12-month transition period, and so only need to comply with textiles EPR from 17 April 2029.
Member States across the EU are already at different stages in their implementation:
France is further ahead than the rest of the EU when it comes to EPR for textiles, having introduced EPR requirements for textiles, linens and footwear in 2007. Companies already have to either contribute to an eco-organisation – a collective, non-profit structure – or establish their own individual waste management system. In the textile sector, the only existing eco-organisation is ReFashion. It collects eco-contributions from its members and redistributes them to finance waste management operators. These contributions may be adjusted upwards (penalties related to recycled rate) or downwards (bonuses for sustainability, environmental certifications, or the incorporation of recycled materials).
As noted above, the recently adopted Ultra‑Fast Fashion Act will significantly increase EPR fees in France for ultra‑fast fashion products.
Building on the EU-level proposal, Spain has already taken steps to transpose its key provisions into national law. Even before the formal adoption of the proposed amendment to the Waste Framework Directive in the EU, the Spanish government initiated the legislative process to approve a Royal Decree specifically addressing the management of textile and footwear waste.
A draft Royal Decree was published for public consultation in summer 2025. The draft Decree closely mirrors the EU text and anticipates core obligations, including the establishment of EPR collective system schemes, mandatory separate collection and reuse targets, the integration of social economy actors, and strengthened requirements around transparency, traceability, and eco-design.
Spain’s draft Royal Decree has taken a further step forward, with the Spanish National Commission for Markets and Competition (CNMC) publishing its report on 15 April 2026. The CNMC takes a broadly positive view on the proposal and, while suggesting some technical refinements, highlights in particular the importance of supporting the separate collection, reuse and recycling targets with a clear assessment of their feasibility and the infrastructure needed to deliver them.
By advancing national legislation in parallel with the EU process Spain has signalled its commitment to regulatory alignment and positioned its fashion and textile sector to adapt early to the forthcoming compliance obligations under the circular economy agenda.
Fashion businesses, particularly those selling textiles in large volumes, will need to budget for new costs, review their reporting systems and consider how design choices could reduce fees under eco-modulation.
Textile and apparel products have specifically been identified as priority targets for the development of mandatory sustainability standards and Digital Product Passport requirements under the ESPR. For the fashion sector, this means the adoption of binding requirements via a delegated act (expected to be adopted in 2027) covering issues such as durability, material efficiency, fibre shedding, water use and product information.
Textiles will be one of the first product groups required to have a Digital Product Passport (or DPP) under ESPR although ESPR envisages DPPs being required across virtually all product types in due course. The DPP is essentially a digital record that accompanies a product throughout its lifecycle, and which provides key sustainability information including in respect of composition, repairability and environmental performance. While the Commission has recently consulted on the general framework and architecture for DPPs, the specific requirements for the textiles DPP will be set out in the same delegated act that provides for the sustainability standards described above.
Further, the forthcoming Commission proposal (expected to be published later in 2026) to revise the existing Textile Labelling Regulation (1007/2011/EU) will complement the ESPR requirements for DPPs e.g. by requiring textile products to bear a digital label/QR code linking to the DPP.
The fashion sector should engage in the development of these sustainability standards, including the DPP requirements. Even businesses with well-established circular models will need to pay attention to ensure that developing standards are consistent with the steps they have already taken in their sustainability journey.
These sustainability measures are reshaping the regulatory environment for fashion with measures that go beyond voluntary initiatives. From restrictions on unsold stock to new design standards, producer responsibility and stricter rules on marketing claims, the direction of travel is clear. Fashion businesses will need stronger governance, better data and reporting systems, more robust substantiation for sustainability messaging, and closer oversight of sourcing and end-of-life arrangements, while also managing increased compliance costs and heightened reputational risk.
Our team advises brands, retailers and investors on ESG, compliance and regulatory strategy across both the EU and UK. Please contact us if you would like to discuss the implications of these developments for your business.
Partner, Intellectual Property, Data Protection & IT, Commercial
Germany
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