What: EU implements comprehensive regulations requiring e-commerce platforms and fashion retailers to fund textile waste management and assume product liability.

Why it is important: These measures represent the EU's most comprehensive attempt to address fashion's environmental impact, creating a framework that could influence global retail practices and supply chain management.

The European Union has introduced sweeping new regulations targeting food and textile waste, fundamentally altering the economics for e-commerce platforms and fashion retailers. The legislation requires all textile producers, including those selling via e-commerce, to fund the collection, sorting, and recycling of their products through extended producer responsibility schemes. Companies must comply within 30 months of the directive's implementation, with small enterprises receiving an additional year. The regulations specifically target fast-fashion business models through financial obligations, while simultaneously mandating food waste reduction targets of 10% in manufacturing and 30% in retail by 2030. The measures also address e-commerce platforms' responsibility for unsafe or illegal products, abolishing the USD 150 duty exemption for low-value imports. This comprehensive approach aims to combat the industry's significant waste generation, with the textile sector alone contributing 12.6 million tonnes of waste annually in the EU.

IADS Notes: The EU's approach to retail regulation has undergone a dramatic transformation throughout 2024-2025, marking a fundamental shift in industry operations. The process began in March 2024 with comprehensive sustainability policies, which caught many fashion retailers unprepared for compliance requirements. By June 2024, the regulatory scope expanded as the EU imposed stricter controls on e-commerce platforms, particularly affecting fast-fashion retailers.

This prompted major industry players to accelerate their adaptation, evidenced by widespread implementation of circular economy initiatives in September 2024. The impact became clear in January 2025 when Ingka Group committed USD 1 billion to recycling infrastructure, anticipating upcoming legislation. The culmination arrived in February 2025 with groundbreaking regulations that not only made platforms liable for unsafe products but also mandated textile waste management costs, signalling a new era of environmental accountability in retail.

EU cracks down on fast fashion and food waste