Did you know that from 2026, the destruction of unsold luxury goods will become illegal in the EU? These and other new regulations in the luxury goods market significantly impact the value and tradeability of your assets. We will show you how to prepare for these changes and minimise risks.
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The topic briefly and concisely
From 2025, new EU regulations, such as the Digital Product Passport and a cash limit of €10,000, will tighten the requirements for trading luxury goods.
The destruction of unsold luxury goods will be prohibited from 2026, making sustainability and the circular economy central value drivers.
Complete documentation of origin and compliance with regulations (e.g., CITES, AML) is crucial in securing the value of luxury assets and avoiding legal risks.
The market for luxury goods is more than just glamour and prestige; it is a complex field shaped by an increasingly dense network of regulations. For owners, heirs, and investors, this means a new level of complexity. Lack of compliance can drastically reduce an item's value or completely block a sale. This article provides you with a comprehensive overview of the key regulations in the luxury goods market and offers practical strategies to not only preserve but future-proof the value of your luxury assets.
The Essentials: The New Game Rules
The regulatory landscape for luxury goods will be fundamentally redrawn from 2025. Four key pillars define the new requirements for owners and traders.
Anti-Money Laundering (AML): A new EU authority (AMLA) and a cash limit of 10,000 euros significantly intensify due diligence obligations.
Digital Product Passport (DPP): From 2027, a digital certificate of origin, materials, and sustainability will be mandatory for many products, including textiles.
Sustainability and Ecodesign: The EU will ban the destruction of unsold goods from 2026, forcing the industry to rethink overproduction, which reached a value of up to 140 billion dollars in 2023.
Wildlife Protection (CITES): Trade in products from nearly 33,000 plant species and 6,000 animal species will be strictly controlled, making provenance verification essential.
These developments require proactive management and data-driven valuation of luxury goods to avoid legal and financial risks.
Enhanced Anti-Money Laundering Measures: What You Need to Know Now
The EU is intensifying the fight against financial crime with direct consequences for the luxury trade. The new EU anti-money laundering package harmonises regulations through a central rulebook ('Single Rulebook'). From 2026, the new Anti-Money Laundering Authority (AMLA) will begin operations to monitor compliance across Europe. One of the most noticeable changes is the introduction of an EU-wide cash limit of 10,000 euros for all transactions. For goods traders, particularly in the fields of yachts, private jets, or high-value jewellery, this means a massive expansion of due diligence obligations. They must fully verify their customers' identities and document transactions precisely. The number of suspicious activity reports already rose by around 30% in 2018 to over 77,000 cases, a trend set to continue. Inadequate documentation can not only lead to significant fines but also considerably diminish an item's value upon future resale. These legal developments make a clean provenance more important than ever.
The Digital Product Passport (DPP): Total transparency becomes the norm
Imagine every handbag, every watch, and every designer piece having its own digital ID. This is exactly what will become reality with the Digital Product Passport (DPP). As part of the EU's Ecodesign Regulation for Sustainable Products (ESPR), the DPP will gradually become mandatory from 2027 for many goods sold in the EU. Initially, this will affect textiles, furniture, and electronics; other luxury goods will follow by 2030. This passport, accessible via a QR code or chip on the product, contains detailed information about:
Material composition and origin
Carbon footprint and other environmental indicators
Repair options and spare part availability
Instructions for proper disposal and recycling
For owners, this means that the value of an item will be inextricably linked to the completeness and accuracy of this data. A missing or incomplete DPP can render a product unsuitable for legal resale. This makes comprehensive documentation all the more important, as considered by a professional luxury goods market analysis. The new regulations for appraisers will need to integrate these digital proofs as standard.
Sustainability as a Requirement: The End of Wastefulness
The luxury industry is facing a turning point driven by new EU sustainability regulations. The fashion industry alone produced an excess of goods valued at up to 140 billion USD in 2023. To combat this waste, the EU is taking strict action. From 2025, the Ecodesign Regulation will require brands to report transparently on their management of surplus stocks. Just a year later, from 2026, it will be illegal to destroy unsold textiles and shoes. This regulation forces manufacturers to fundamentally rethink their production cycles and supply chains. For the valuation market, this means exclusivity will no longer be defined merely by artificial scarcity. The focus shifts to durability, reparability, and the circularity of a product, documented through the aforementioned Digital Product Passport. The dangers of false valuations increase if these new value drivers are ignored.
Focus on Species Protection: CITES and the Responsibility in Trade
Do you own luxury goods made from exotic leather, rare woods, or ivory? Then the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) is crucial for you. This international agreement, uniformly implemented in the EU through Regulation (EC) No 338/97, strictly regulates trade in endangered species. Nearly 6,000 animal species and about 32,800 plant species are protected worldwide. Seamless documentation and permits are required for trade involving these species or products made from them. Without valid CITES documents, selling or importing is illegal and can lead to confiscation. In Germany, customs authorities strictly monitor compliance with these regulations, both for commercial shipments and private travel. For heirs or owners of older items, it is essential to unequivocally prove the origin and legality of the materials. A neutral evaluation by experts in luxury goods appraisals can provide clarity and verify the necessary documents.
Online Trade and Consumer Protection: Control Over the Brand Image
The sale of luxury goods on the internet is also subject to strict rules. The landmark case here is the "Coty ruling" by the European Court of Justice (ECJ). It allows manufacturers of luxury items to prohibit the sale of their products on third-party platforms like Amazon or eBay to protect the prestige and the "luxury image" of the brand. This ensures exclusivity but also places high demands on authorised dealers. At the same time, there is growing pressure on politicians to enforce European standards on product safety and consumer protection on non-EU platforms like Temu or Shein. In 2024 alone, four billion parcels were sent from third countries to EU consumers, often bypassing existing regulations. For buyers and sellers on the secondary market, this means that the choice of sales platform and compliance with the expertise regulations are crucial for legally secure trade.
regulationen-im-luxusgutermarkt
The increasing regulations in the luxury goods market are not a temporary trend, but a profound change in the rules of the game. Whether it's anti-money laundering measures, digital product passports or proof of sustainability – the demands for transparency and documentation are rising exponentially. For owners and investors, it is no longer sufficient to rely on mere brand prestige. The value of a luxury good now largely depends on its demonstrable compliance with these regulations. Are your assets prepared for this new era? A data-driven, neutral assessment is the first step to identifying risks and ensuring the sustainable value of your portfolio. Use our ImmoGPT chat now to clarify initial questions, or request a non-binding assessment to make informed decisions. Act now, before new regulations diminish the value of your assets.
Additional useful links
Transparency International offers a policy brief on the regulation of luxury investments and their role in the fight against money laundering.
The European Commission displays the sectoral view of the EU taxonomy for sustainable finance, relevant for the classification of sustainable economic activities.
econsense provides a summary of current topics in sustainable corporate governance and their significance for the economy.
Statista delivers a global outlook on the luxury goods market with relevant statistics and forecasts.
Deloitte offers insights into the consumer goods industry in Germany, including trends and challenges in the luxury segment.
Wikipedia explains the term "luxury goods" and its economic significance.
FAQ
What regulations are most important for me as an heir of luxury watches?
As an heir, there are three crucial areas for you: 1. The Money Laundering Act (GwG) requires comprehensive provenance for the sale. 2. The CITES agreement is relevant if bracelets are made from protected leather (e.g. alligator). 3. The upcoming Digital Product Passport (DPP) will be essential for future assessments and resale value.
I own a designer bag but no longer have the papers. What should I do now?
Without original documents, proving authenticity and legality is difficult, which significantly reduces the value. Contact an expert in luxury goods appraisals. They can often provide a retrospective appraisal through material analysis and serial number verification, which assists in a sale and ensures compliance with regulations in the luxury goods market.
Do I, as a private seller, also need to provide the Digital Product Passport?
Yes, once the DPP is mandatory for a product category, the requirement applies for placing the product on the market in the EU. Even as a private seller, you must ensure that access to the DPP (e.g., via the QR code on the product) is guaranteed for the buyer, otherwise the product will be considered non-compliant.
What happens if I unknowingly buy a luxury item without CITES papers?
Ignorance does not exempt from penalty. If goods are imported or traded without valid CITES documents, they may be confiscated by customs. Both the buyer and the seller can face significant fines or even legal proceedings as a result.
How can Auctoa help me comply with these regulations?
Auctoa offers data-driven, AI-supported assessments that take new regulatory requirements into account. We help you review the necessary documentation and understand how factors such as the DPP or CITES compliance can affect the market value of your luxury item today and in the future. Our ImmoGPT chat can also quickly and easily answer initial questions.
Do the sustainability regulations also apply to the second-hand trade?
Indirectly yes. While the ban on the destruction of goods primarily affects manufacturers, it enhances the value and attractiveness of the secondary market. Products that are demonstrably durable, repairable, and sustainable (information from the DPP) will see higher demand and better prices on the used market.
