California Settles $1.75M Lawsuit Over False Plastic Bag Recycling Claims, Launches Another

California’s attorney general has reached a $1.75 million settlement with four plastic bag producers and initiated a lawsuit against three more, alleging that the companies falsely claimed their plastic bags were recyclable to comply with a state ban on single-use plastic bags known as SB 270.

According to the October 17, 2025, announcement, the defendants in both cases labeled their bags with the “chasing arrows” recycling symbol, made recyclability claims, and self-certified their products as recyclable.  However, when the attorney general’s office sent demand letters requiring that the producers substantiate their claims, they were allegedly unable to provide sufficient evidence.

“[D]espite the manufacturers’ claims and widespread consumer belief, these bags do not, in fact, appear to generally be recyclable, let alone ‘recyclable in the state,’ as SB 270 requires,” the announcement states.

California’s recycling authority, CalRecycle, has “released several reports indicating that the vast majority of plastic carryout bags in California are not being recycled in California,” the most recent complaint states.  Even plastic bags deposited in designated collection bins mostly “end up in landfills or incinerators or are shipped to other countries.”

In addition to violating SB 270, all defendants face alleged violations of California’s Environmental Marketing Claims Act, False Advertising Law, and Unfair Competition Law.  Some of the violations stem from alleged noncompliance with the Federal Trade Commission’s (FTC’s) Green Guides, which are incorporated into California law.

The settlement is subject to court approval.  A copy of the proposed final judgement can be found here.