But companies stockpile goods in anticipation of potential demand. For example, they'll "overproduce" winter coats because some winters are colder than average. This sort of anti-overproduction law means that the next time there's an unexpected need -- for example an unusually cold winter -- there will be a shortage because there won't be any warehouses full of "just in case" inventory.
Every business decision is a tradeoff. Smart government interventions in the economy add weight to that tradeoff to reflect externalities not otherwise accounted for; this is how cap-and-trade on SO2 emissions works. Hamfisted government interventions set hard and fast rules that ignore tradeoffs and lead to unintended consequences.
Climate change is coming, fast and brutal. I'm okay with these multi-billion-dollar revenue companies making a few points less in profits, if it means slowing climate change by even a fraction of a fraction of a point.
They don't need those profits. But our children need a viable planet.
> A company can't prevent a consumer from ruining the wasted clothes.
When a consumer ruins clothing during try on he needs to buy it. I have always expected that rule to be the same everywhere.