EU: Sustainable products – disclosure of information on unsold consumer products

 

The EU Commission has informed about its legislative plans to regulate the disclosure of information on unsold consumer products.

EU rules for sustainable products, especially the article 24 of the Ecodesign for Sustainable Products Regulation (ESPR) identify the destruction of unsold consumer products as an environmental problem. To discourage this practice, businesses (except for micro and small enterprises) are required to disclose information on unsold consumer products that they dispose of.

The initiative will specify:

• the delimitation of the product types concerned
• the format for the disclosure of information
• how such information is to be verified.

A public consultation will be launched in the coming weeks.

Background information

The requirements will affect unsold “consumer products,” broadly defined as any product primarily intended for use by consumers, while excluding component and intermediate goods. Some product categories—such as food, animal feed, and medicinal products—are explicitly excluded from the scope of the Ecodesign for Sustainable Products Regulation (ESPR) and are, therefore, not generally subject to its provisions concerning unsold consumer goods. However, related items, including associated and packaging products, may still fall under the ESPR’s remit.

The term “unsold” consumer products typically encompasses all goods that remain unsold due to reasons such as overproduction, surplus stock, excess inventory, deadstock, or consumer returns made under the right of withdrawal. This category may include returned goods, promotional samples, test kits, packaging, and similar items.

The concept of “destruction” is interpreted broadly under the ESPR. It does not only refer to complete demolition or ruin but also includes actions such as deliberately damaging or discarding a product as waste. While there are specific exceptions, the general rule is that destruction covers a wide range of disposal methods. Notably, recycling is not automatically excluded from the ESPR’s overarching ban on the destruction of unsold products set out in Article 25. As a result, products that fall under the ban cannot simply be recycled. Instead, they must be processed through “preparation for re-use” or handled in a manner consistent with ESPR requirements and other applicable EU legislation.

Legal obligations under the ESPR also extend to non-EU/EEA entities under certain conditions. Companies based outside of the EU or EEA that sell, supply, or otherwise make products available within the Union must carefully evaluate their obligations under the ESPR. This includes implementing compliance measures such as maintaining detailed documentation and records.

Core Requirements

The ESPR establishes three primary requirements concerning the management of unsold consumer products:

1. Preventive Measures Obligation
   All relevant economic operators—regardless of size—are required to take necessary and reasonable steps to avoid the destruction of unsold consumer goods. These steps must be designed to prevent such destruction from becoming necessary in the first place. Companies are, therefore, expected to identify and adopt at least some proactive measures to reduce the volume of unsold products destined for disposal. Examples of such measures may include improving product returns policies or using predictive analytics to reduce overstocking and dead inventory.
2. Transparency Obligation
   This obligation, which applies to companies meeting specific size thresholds, mandates the disclosure of data related to the destruction of unsold products. Companies must publicly report, on their websites, the annual quantity of unsold consumer goods they destroy. Additionally, certain enterprises must include this information in formal corporate documents, such as the management reports required by the Corporate Sustainability Reporting Directive (CSRD) and other related regulations. Within 12 months, the European Commission is expected to introduce implementing measures detailing the content and format of these disclosures. Starting from 19 July 2027, and every three years thereafter, the Commission will publish consolidated EU-wide statistics on the destruction of unsold consumer products.
3. Prohibition on Destruction
   Arguably the most consequential of the three, this requirement institutes a general ban on the destruction of specific categories of unsold consumer products. This ban will take effect on 19 July 2026. Initially, the prohibition covers only a limited set of products—namely, those listed in Annex VII of the ESPR, which currently includes apparel, clothing, and footwear. However, the Commission has been granted the authority to expand this list in the future, and further categories of consumer goods are expected to be added over time.