Circular Fashion: What It Means and the Rules Pushing Brands There

For years, circular fashion was something brands talked about in sustainability reports and capsule collections. That has changed. In the EU, large companies can no longer destroy unsold clothes and shoes, every member state must set up a producer-funded system for textile waste, and product design rules are on the way. France got there earlier, California has its own textile recovery law, and the UK is still deciding. This guide explains what circular fashion means, which rules are now pushing brands towards it, and what a brand selling into the US, UK or EU should be doing about it.

Short answer: Circular fashion means designing and running a clothing business so products are used more, made to be made again and made from safe, recycled or renewable materials. It is now backed by law: the EU bans large firms from destroying unsold apparel and footwear from 19 July 2026, and textile extended producer responsibility must be in place across the EU by April 2028.

Key takeaways

• The Ellen MacArthur Foundation’s definition, now the industry standard, rests on three principles: products used more, made to be made again, and made from safe and recycled or renewable inputs.
• Under the EU Ecodesign for Sustainable Products Regulation, large companies may not destroy unsold apparel, clothing accessories or footwear from 19 July 2026; medium-sized companies follow in 2030.
• Directive (EU) 2025/1892 entered into force on 16 October 2025 and gives member states 30 months to run textile EPR schemes, with fees linked to durability and recyclability.
• California’s Responsible Textile Recovery Act required producers to join an approved producer responsibility organisation by 1 July 2026; the UK has no textile EPR law yet.

What does circular fashion actually mean?

There is no single legal definition, but the framing most regulators and brands use comes from the Ellen MacArthur Foundation. Its vision of a circular economy for fashion is one in which products are “used more, made to be made again, and made from safe and recycled or renewable inputs”. The contrast is with the linear model of take, make and throw away. The Foundation’s fashion overview puts the cost of that model bluntly: every second, the equivalent of a rubbish truckload of clothes is burnt or buried in landfill.

In practice, circular fashion covers several business models that already exist side by side:

FLJ Insider Pro is open: live fashion law jobs and internships, five career guides and two roadmaps. Early bird USD 12/month. See what's inside

• Used more: durable design, repair services, resale, rental and take-back schemes that put garments back into use.
• Made to be made again: mono-material fabrics, easy disassembly and fibre-to-fibre recycling.
• Safe, recycled or renewable inputs: recycled fibres, responsibly grown natural fibres and the removal of hazardous chemicals.

Recycling is only one part of this, and usually the last resort. FLJ’s earlier piece, Fashion and Recycling, A Long but Possible Way Towards Circularity, looks at why turning old clothes into new fibre is still hard. This guide focuses on the rules that now make circularity a legal question rather than a marketing choice.

Why is the EU leading on circular textiles?

Because the volumes are large and the collection system has been weak. The European Environment Agency’s report on used and waste textiles found that in 2020 the EU generated around 16 kg of textile waste per person, of which only 4.4 kg was collected separately for reuse and recycling, while 11.6 kg ended up in mixed household waste. From 2025, member states must also run separate collection systems for used textiles.

The political plan behind the new rules is the EU Strategy for Sustainable and Circular Textiles, adopted by the European Commission on 30 March 2022. Its 2030 vision is that all textile products placed on the EU market are “durable, repairable, recyclable, and, to a great extent, made of recycled fibres, free of hazardous substances, and produced in respect of social rights and the environment”. It also says “fast fashion is out of fashion”. The strategy promised design requirements, a Digital Product Passport, mandatory EPR for textiles, action on microplastics and limits on exports of textile waste. Most of those promises have now turned into law.

What does the ESPR mean for clothing brands?

The Ecodesign for Sustainable Products Regulation, Regulation (EU) 2024/1781, does three things that matter to fashion.

It bans destroying unsold stock. Large companies may not destroy unsold apparel, clothing accessories and footwear from 19 July 2026, and medium-sized companies are expected to follow in 2030. On 9 February 2026 the Commission adopted the detailed rules: a delegated act listing the limited cases where destruction is still allowed, such as safety reasons or product damage, and an implementing act setting a standard format for reporting discarded volumes, which applies from February 2027. The Commission estimates that 4 to 9% of unsold textiles in Europe are destroyed before ever being worn, producing around 5.6 million tonnes of CO2 emissions. National authorities enforce the ban. FLJ has covered why brands used to destroy stock in deadstock destruction.

It requires disclosure. Companies must publish information on the unsold consumer products they discard as waste. The Commission says these disclosure rules already apply to large companies and will reach medium-sized companies in 2030.

It will set design rules. In its working plan of 16 April 2025, the Commission named textiles, with a focus on apparel, as one of the first priority product groups for ecodesign requirements, which will be set by delegated acts after preparatory studies. Product information will mainly be delivered through the Digital Product Passport, which FLJ explains in DPPs and what they mean for fashion. No final textile requirements had been adopted at the time of writing.

How will textile EPR work in the EU?

The revised Waste Framework Directive, Directive (EU) 2025/1892, was published in the Official Journal on 26 September 2025 and entered into force on 16 October 2025. Member states have 20 months to transpose it and 30 months to set up extended producer responsibility (EPR) schemes for textile and footwear products, which points to April 2028. Micro-enterprises get an extra 12 months.

Under EPR, the producer pays a fee for each product placed on the market. Those fees fund collection, sorting, reuse, preparation for reuse, recycling and disposal, plus consumer information and research. Fees will be adjusted, or eco-modulated, by sustainability criteria such as durability and recyclability, so a garment built to last should cost less to place on the market than a disposable one. Producers include online sellers and companies based outside the EU that sell into it. The scope covers clothing, accessories, hats, footwear, blankets, bed and kitchen linen and curtains, and member states may add mattresses. Social economy enterprises that collect second-hand textiles are exempt from EPR obligations. FLJ’s detailed guide to textile EPR under the revised Waste Framework Directive covers registration and reporting.

What has France already done?

France moved first. Its anti-waste and circular economy law, known as the AGEC law (Loi n° 2020-105 of 10 February 2020), banned the elimination of unsold non-food products from 1 January 2022. The French government says that before the law, 10,000 to 20,000 tonnes of textiles were destroyed each year. Since 1 January 2023, manufacturers must also publish environmental information about their products; for textiles this includes where the main manufacturing steps took place and the presence of plastic microfibres. France has since gone further with rules aimed at fast fashion, explained in FLJ’s guide to France’s anti-fast fashion law.

What are the rules in the US and the UK?

United States. There is no federal textile EPR law. California’s Responsible Textile Recovery Act of 2024 (SB 707), signed in September 2024, was the first in the country. It makes producers of apparel and household textiles responsible for funding collection, repair, reuse and recycling. The producer is, in order, the brand owner or licensor, then the exclusive licensee, then the importer, then the distributor or retailer. Sellers with less than $1 million in annual California sales are exempt. According to CalRecycle, the state approved Landbell USA as the producer responsibility organisation in March 2026, producers had to join it by 1 July 2026, and the organisation must have an approved plan by July 2030 and implement it fully in 2031.

United Kingdom. The UK has no textile EPR scheme and no ban on destroying unsold stock. Textiles were named as one of five priority sectors by the government’s circular economy taskforce, but its Circular Economy Growth Plan for England had not been published as of autumn 2026. What does bite now is consumer law on green claims. The Competition and Markets Authority has warned fashion brands about vague “sustainable” and “recycled” claims and, since April 2025, can fine businesses up to 10% of global turnover for breaching consumer law. Claims that a product is “circular” or “recyclable” need the evidence to match.

What should brands do now?

• Map where you sell. EPR follows the market, not your head office. Any brand shipping to EU consumers, including from the US or UK, will need to register in each member state once national schemes open.
• Plan for unsold stock. If you are a large company selling in the EU, build resale, donation, outlet and reuse routes now, and keep records showing why any destruction falls within a permitted derogation.
• Collect product data. Fibre composition, recycled content, durability and repairability data will drive EPR fees and the Digital Product Passport.
• Design for the fee. Mono-material fabrics, removable trims and repairable construction will matter once fees are eco-modulated.
• Check your claims. “Circular”, “recyclable” and “made from recycled materials” are environmental claims; FLJ’s guide to the EU greenwashing ban explains what changed on 27 September 2026.
• Watch California and the UK. If you sell over $1 million a year into California, confirm you have joined the PRO; in the UK, prepare for EPR even though the timing is unknown.

This article is general information, not legal advice. National EPR schemes and enforcement practice vary by country; check the rules in each market you sell into.

Frequently asked questions

What is circular fashion in simple terms?

Circular fashion is a way of making and selling clothes so they stay in use as long as possible and can be remade at the end of their life. The Ellen MacArthur Foundation describes it as products that are used more, made to be made again and made from safe, recycled or renewable inputs.

Is circular fashion the same as sustainable fashion?

Not quite. Sustainable fashion is a broad term covering environmental and social impact. Circular fashion is narrower and focuses on keeping products and materials in use through durability, reuse, repair, resale and recycling, and on designing waste out of the system.

When does the EU ban on destroying unsold clothes start?

For large companies, the ban under the Ecodesign for Sustainable Products Regulation applies from 19 July 2026. Medium-sized companies are expected to follow in 2030. Limited derogations, such as for safety reasons or damaged products, are set out in a Commission delegated act adopted in February 2026.

What is textile EPR?

Extended producer responsibility for textiles makes the company that places clothing or footwear on the market pay for its collection and end-of-life treatment. In the EU, every member state must set up a scheme within 30 months of 16 October 2025, with fees linked to sustainability.

Does the EU textile EPR apply to US and UK brands?

Yes, if they sell to consumers in the EU. The revised Waste Framework Directive covers producers including online sellers and companies based outside the EU, so a non-EU brand selling directly to EU customers will need to comply in each member state it ships to.

Does the UK have circular fashion laws?

Not yet in the form of EPR or a destruction ban. Textiles are a priority sector for England’s planned circular economy strategy, but no textile EPR law has been passed. UK consumer law does apply to circularity claims, and the CMA can now fine brands for misleading ones.