With the French government introducing one of the world’s toughest crackdowns on fast fashion, the ‘Ultra-Fast Fashion Bill’ will now include an escalating eco-tax of €5–€10 per item, mandatory “eco-score” labelling, and a ban on advertising.

While the law will be enforceable in France, its significance could be much farther reaching, with its impact felt across additional international markets, says Emily McGill, Sustainability Communications Manager at ReBound Returns. With France’s strong track-record of shaping wider EU policy, this bill is already being watched closely – both by governments and by retailers – well beyond its borders.

An environmental imperative

Environmental concerns are driving the tightening of regulation – and its urgency is clear. According to anti-waste charity the Ellen MacArthur Foundation, one truckload of clothing is sent to a landfill or burned every second globally. Fast fashion is also the second largest consumer of water worldwide and contributes around 2-8% of global carbon emissions. Without action, textile manufacturing emissions are projected to rise by 60% by 2030.

With environmental concerns rising on both the regulatory and consumer agenda, retailers cannot afford to ignore the direction of travel.

The domino effect of French legislation

In the 1990s, France emerged as a pioneer of Extended Producer Responsibility (EPR) for packaging of electronics, with textile packaging coming later in 2007. The policy principle was designed to shift the burden of waste management from municipalities to producers. The EU followed suit by introducing its own EPR framework, drawing heavily on France’s approach, and continues to take inspiration from its evolving policies.

The European Parliament has approved amendments to the Waste Framework Directive to include textiles under Extended Producer Responsibility (EPR). Once the Directive is published in the EU’s Official Journal, Member States will have 20 months to transpose it into national legislation, followed by an additional 10 months to put EPR systems into operation.

The UK, by contrast, has typically taken a ‘watch and wait’ stance before introducing its own regulations. While adoption may come later than in Europe, mounting pressure to strengthen environmental performance – particularly with COP30 approaching – could accelerate change in the UK sooner than anticipated. Retailers should expect stricter frameworks to spread across Europe and beyond.

ESG under scrutiny

So, what does this mean for retailers? Regardless of where they operate, retailers globally are facing growing expectations to strengthen their ESG performance.

Product quality and durability are becoming central to this shift, with businesses needing to demonstrate that what they put on shelves is built to last. Packaging and production are also under scrutiny, with pressure to reduce waste and adopt more circular approaches across supply chains.

While such changes may require investment, they also open opportunities: to deliver greater value for consumers. By reducing environmental impact across operations, retailers can highlight how the sector is actively shaping a more sustainable future. Embracing sustainability can also attract customers – almost one in five shoppers are willing to pay extra for sustainable returns, according to our research.

Retailers leading the charge

Across the sector, retailers are experimenting with new ways to lessen their environmental footprint. Materials are a clear focus for sustainable innovation. Mango, for example, has committed to using 100% recycled polyester by the end of this year, while Allbirds is turning to bio-based inputs, such as sugarcane and eucalyptus fibres.

Circularity is also moving up the agenda. Partnerships are helping brands embed new models: ASOS is working with Hirestreet to convert returns into rental stock, while Nobody’s Child has teamed up with Reskinned to offer take-back schemes for resale or recycling. Global circularity partners can connect retailers with solutions covering returns to faulty production, overstock and end-of-life materials, to ensure items find their best possible second life.

The momentum of retailers globally is encouraging, but the industry’s shift is still in its early stages. High upfront costs and operational complexity remain barriers to many brands looking to become more sustainable. The challenge – and opportunity – lies in scaling these initiatives from isolated pilots to standard practice across the industry.

Building the future supply chain

Creating a genuinely low-emission and circular retail network will require collaboration across supply chains – from design and materials to reverse logistics and recycling partners. The task is complex, but the benefits are clear: reduced environmental impact, greater efficiency and stronger consumer trust.

Returns are rising, but this trend can become an opportunity.

Retail has the chance to move from being part of the problem to driving the solutions. France’s latest bill may be the catalyst, but the responsibility – and the opportunity – is shared across the sector.