I'd be much happier with a law like that, yes. Clearance racks and outlet stores are already a well-known practice, so it seems like a minimal distortion to require that all clothing product lines have to cycle through them before being destroyed or recycled. My experience with clearance racks, though, is that people ~never buy something they're not excited about just because the discount is high. They browse to see if they get lucky on something they might have bought anyway, and if they don't they go buy something else at full price.