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You're assuming there is such a price! Charity shops throw out the majority of clothes they are given: some things just will never sell.[1]

[1] https://theclothingbank.org.uk/what-happens-to-the-clothes-y...

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Once once they are rejected by charities, they can be destroyed just like before this law. EU regulators are flawed humans, but you can be assured that any argument you can come up with in 10 minutes has been considered.

Fair enough, but now I would "solve for the equilibrium" and assume that any large clothing company will have a friendly charity to reject its clothes for it.

Those are used clothes. New clothes, especially from a brand that would use a shredder to have a little more exclusivity? I expect almost all to sell just fine.

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