LSN : Daily Signals : EU to ban destruction of unsold fashion and accessories

Chili’s turns margarita superfans into club members

Chili’s Margarita of the Month Club, US

US – American casual dining chain Chili’s has launched an official Margarita of the Month Club, timed to coincide with National Margarita Day on 22 February.

The club is a formalisation of its Margarita of the Month menu (a changing menu of culturally or seasonally inspired monthly margaritas) which has led to the chain becoming a drinks powerhouse, selling nearly 30m margaritas in 2025 – more than any other restaurant brand in the US. Inspired by a group of self-described ‘diehards’ who return each month for the latest flavour, Chili’s is now turning that repeat behaviour into structured belonging.

The free club, open to guests aged 21 and over, allows members to track the margaritas they’ve tried and purchase branded merchandise including hats, bags, shirts and recipe books. ‘We decided to give them an official way to show off their fandom complete with merch and a way to keep track of each of the margs they’ve tried,’ says George Felix, Chili’s chief marketing officer in the press release.

The move shows how brands are formalising organic fandom into community ecosystems, rewarding ritualistic participation rather than simply driving acquisition – something we reported in our Neo-community Market.

Strategic opportunity

People are seeking tangible ways to belong and express their values. Branded merchandise and clubs turn existing fandom into structured communities, letting consumers signal identity while deepening emotional engagement. For more, read our The New Merch Cycle Market report

EU to ban destruction of unsold fashion and accessories

EU – The European Commission has confirmed a ban on the destruction of unsold clothing, accessories and footwear, under new measures adopted as part of its Ecodesign for Sustainable Products Regulation (ESPR).

The rules build on the EU’s 2024 ESPR framework, which gives the Commission powers to set sustainability requirements across product lifecycles, from durability and repairability to recycled content and environmental footprint.

The move is a response to mounting waste levels. The Commission estimates that 4–9% of unsold textiles in Europe are destroyed before being worn, a figure intensified by online shopping and returns. This practice generates about 5.6m tonnes of CO2 emissions annually.

From July 2026, large companies will be prohibited from destroying unsold apparel and footwear, with medium-sized firms following in 2030. From February 2027, brands will also be required to disclose how many unsold consumer products they discard using a standardised reporting format.

The Commission is urging Fashion businesses to improve stock management and prioritise resale, remanufacturing, donation and re-use, while allowing limited exemptions for safety or damaged goods. The measures are positioned as a step towards a more competitive, circular European fashion economy.

Explore how brands and businesses are responding to climate legislation in our Sustainability topic.

Roku by Camper, Spain

Strategic opportunity

Audit surplus pathways across product, marketing and logistics, and build integrated resale, repair or donation partnerships to cut risk, unlock value and signal circular leadership to regulators and consumers

Stat: Teenagers in England exposed to harmful and illegal product advertising online

The Algorithm of Disrespect™ by the Australian Department of Social Services, Australia

UK – Children in England are being ‘bombarded’ with online ads for harmful, age-restricted products, according to a survey of 2,000 teenagers for the Children’s Commissioner for England.

Among 13–17-year-olds, 41% reported seeing prescription-only weight loss drugs, 27% toxic skin-whitening creams and 24% steroids. More than half had seen weight loss foods, while 8% had tried non-prescription pills.

Exposure spans social media, gaming and influencer content, despite many products being illegal for under-18s. More than three-quarters said this content damaged their self-esteem, and just 40% of girls and 60% of boys say they are happy with how they look.

The findings come as the UK government consults on banning social media for under-16s, building on the Online Safety Act. Our Teens, Tech and Tapping Out report explored how an unprecedented teenage mental health crisis, coupled with the toxic and addictive nature of social media, is inspiring a grassroots movement of activist parents looking to change youngsters’ relationships with their smartphones.

Strategic opportunity

Design platforms and campaigns that prioritise safety and wellbeing, using age-gating, contextual ad controls and verified content to build trust among younger audiences and their parents