EU's 2025 Textile Legislation: A Turning Point for Shein and Fast Fashion

In 2025, the European Union (EU) has implemented a series of transformative regulations aimed at reshaping the fashion industry, with a particular focus on curbing the environmental and social impacts of fast fashion giants like Shein. These legislative measures are poised to significantly alter the operational landscape for such companies within the EU market.

Key EU Regulations Affecting Fast Fashion

1. Extended Producer Responsibility (EPR) for Textiles

Effective January 1, 2025, the EU has mandated that textile producers are responsible for the entire lifecycle of their products, including post-consumer waste. This regulation compels companies to establish systems for the collection, recycling, and proper disposal of textile waste, thereby discouraging the practice of destroying unsold goods.

2. Digital Product Passports (DPP)

The introduction of DPPs requires that all textile products sold in the EU provide detailed information about their composition, repairability, and recyclability. This move aims to enhance transparency and facilitate recycling efforts, holding brands accountable for their environmental footprint.

3. Corporate Sustainability Due Diligence Directive (CSDDD)

Implemented in July 2024, the CSDDD obligates large companies to assess and mitigate human rights and environmental risks within their supply chains. This directive applies to companies with over 1,000 employees and €450 million in global turnover, compelling them to ensure ethical practices throughout their operations (however, postponements and changes in scope have occurred over the last 6 months).

4. Green Claims Directive

This directive, adopted in March 2023, targets misleading environmental claims by requiring companies to substantiate their green marketing with verifiable evidence. It aims to combat greenwashing and promote genuine sustainability efforts. Starting from September 2026. This is to intensify its scrutiny of environmental claims, with plans to ban vague terms like "eco-friendly" unless substantiated by independent verification. This initiative seeks to protect consumers from deceptive marketing practices and encourage authentic sustainability.

5. EU Textile Waste Directive (WFD – Textiles)

Effective January 2025, this directive mandates the separate collection of textile waste across all EU member states. It is the first major step in aligning the textile industry with the EU’s circular economy goals. The directive also introduces Extended Producer Responsibility (EPR), expected by 2026/2027, requiring producers to fund collection and recycling systems.

Shein's Response to EU Regulations

In anticipation of these regulatory changes, Shein has established a €200 million Circularity Fund in the EU and UK.The fund aims to support startups and businesses focused on textile-to-textile recycling innovations, as well as to enhance Shein's own circularity efforts .

Despite these initiatives, Shein faces significant challenges. The company is under investigation by EU authorities for potential breaches of consumer protection laws, including allegations of fake discounts and misleading sustainability claims . Furthermore, Shein's products have been found to contain hazardous chemicals, violating EU safety standards.

Implications for the Fast Fashion Industry

The EU's stringent regulations are compelling fast fashion brands to reevaluate their business models. Companies are now required to adopt sustainable practices, ensure transparency in their supply chains, and provide verifiable environmental claims. Failure to comply with these regulations can result in significant fines and reputational damage.

For Shein, the path forward involves substantial investment in sustainable practices, enhanced transparency, and rigorous compliance with EU regulations. The company's ability to adapt to these changes will determine its future viability in the European market.

Looking Ahead

The EU's 2025 textile legislation marks a great shift towards a more sustainable and ethical fashion industry. While these changes present challenges for fast fashion companies like Shein, they also offer opportunities for innovation and growth in the realm of sustainable fashion. The industry's response to these regulations will shape the future of fashion in Europe and beyond.