Federal Court Blocks California’s “Truth in Recycling” Law on First Amendment Grounds

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A federal court has preliminarily blocked California’s “Truth in Recycling” law, ruling that its restrictions on recyclability claims are likely unconstitutional under the First Amendment and finding that several of its key provisions are impermissibly vague under the Fourteenth Amendment.

In a July 14, 2026, order, the Southern District of California concluded that although the provisions likely to be unconstitutionally vague could be severed from the statute, the plaintiffs were likely to succeed on their broader First Amendment challenge.  As a result, the court enjoined enforcement of the law in its entirety pending further litigation.

What California’s “Truth in Recycling” Law Requires

California enacted SB 343, often referred to as the “Truth in Recycling” or “Truth in Labeling” law, in October 2021.  The law declares recyclability claims—including the chasing arrows symbol—deceptive or misleading unless certain criteria are met.  Chief among them is the “60/60 requirement,” which mandates that the labeled product or packaging be:

  1. Collected for recycling by jurisdictions serving at least 60% of Californians; and
  2. Processed by facilities serving at least 60% of recycling programs statewide, with the collected material sent to and reclaimed at a facility consistent with the Basel Convention (a 1989 treaty governing the transnational movement of hazardous waste).

The law also requires that:

  • The labeled product or packaging “routinely” become feedstock used to produce new products or packaging;
  • Plastic packaging not include any components, inks, adhesives, or labels that prevent recyclability, according to guidance published by a plastics trade association; and
  • Plastic products and non-plastic products and packaging be “designed to ensure recyclability” and not include any components, inks, adhesives, or labels that prevent recyclability.

These restrictions were set to take effect on October 4, 2026.  The plaintiffs—a coalition of roughly twenty trade associations spanning food, packaging, grocery, and retail industries—sued Attorney General Rob Bonta in March 2026, arguing the law is unconstitutional on its face.

Key Provisions Likely Unconstitutionally Vague

The plaintiffs argue that four of the law’s requirements are unconstitutionally vague under the Fourteenth Amendment.  For the purposes of a preliminary injunction, the court found that they are likely to succeed on each challenge:

  1. The “routinely becomes feedstock” provision, because the meaning of “routinely” is unclear.
  2. The Basel Convention requirement, because manufacturers were given no guidance on how compliance with the provision will be determined, which elements of the convention will be considered in reaching a determination, and which facilities are currently in compliance.
  3. The reference to industry guidance, because it is ambiguous whether materials categorized as “Detrimental to Recycling” or “Tolerated But Needs Improvement” are permissible, and because SB 343 does not address what happens when the guidance changes.
  4. The ensures or prevents recyclability provision, because the law provides no guidance on what those terms mean.

The court found all four requirements severable from the remaining text of the law, including the 60/60 requirement—meaning that the rest of the law could still theoretically be allowed to take effect even if the four vague provisions were enjoined.

First Amendment Analysis

The remainder of the law could not withstand scrutiny under the First Amendment, however.

As a threshold matter, the court first determined that the speech at issue is only “potentially” misleading, and not “inherently” misleading, and therefore within the scope of the First Amendment.  The court then applied the remaining prongs of Central Hudson Gas & Electric Corp. v. Public Service Commission, the framework applicable to many regulations of commercial speech.

While finding that California has substantial interests in (1) improving recycling rates and (2) reducing consumer confusion, the court concluded that neither interest was directly advanced by the law.  Addressing recycling rates first, the court held that California failed to adequately support its assertion that businesses would redesign products and packaging to make them recyclable under the law instead of simply removing their recyclability claims.  Gains in efficiency at recycling facilities from removing contaminants “may be substantially outweighed by the decreased rate at which recyclable materials reach those facilities,” the order states.

As to consumer confusion, the court held that the reduced number of recyclability claims would leave customers “with less information than they would receive in the absence of SB 343’s regulatory scheme.”  For example, a product only recyclable in one part of California could not be labeled with that information because the 60/60 requirement would not be satisfied, the court observed.

Finally, the court also held that the law is more extensive than necessary to serve its interests, observing that less extensive regulations, such as required disclosure of materials that may limit recycling, would also advance the state’s goal.

The case is California League of Food Producers v. Bonta, No. 3:26-cv-1675 (S.D. Cal.), filed March 17, 2026.

Bill Targets Misleading Recycled Content Claims, Endorses Mass-Balance Accounting

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A bipartisan group of lawmakers has introduced legislation to prohibit misleading recycled content claims and establish mass-balance accounting as an acceptable method for substantiating them.

The Recycled Materials Attribution Act of 2026 was introduced by Rep. Langworthy (R-NY) on February 11, 2026, and is currently pending before the House Energy and Commerce Committee.  The text of H.R. 7502 was made publicly available this month.

The bill would prohibit misleading recycled content advertising claims, enforceable by the Federal Trade Commission (FTC).  Fuels produced and sold as an end product would also be ineligible for recycled content marketing.  At the same time, the legislation recognizes mass-balance accounting as an acceptable method for substantiating recycled content claims, provided its use complies with a third-party certification system.  The legislation defines recycling to include both mechanical and non-mechanical recycling.

The bill would require the FTC to update the Green Guides—the agency’s guidance for environmental marketing claims—within one year to reflect these requirements.  The FTC would additionally be required to issue guidance clarifying that mass balance accounting representations be based on “competent and reliable scientific evidence” and provide a “clear and consistent framework” for recycled content claims.

A separate provision would preempt state and local laws relating to the legislation’s prohibition and enforcement provisions.

The bill is backed by the Recycling Leadership Council (RLC), a coalition that includes the American Chemistry Council, American Circular Textiles, and the Consumer Brands Association.

“Advanced technology in recycling is transforming how we recover and reuse materials that would otherwise end up in landfills, but our regulations have remained stagnant,” Rep. Langworthy said in a statement released by the RLC.  “This much-needed legislation changes that by modernizing and updating the rules with a uniform national standard that protects consumers from misleading claims while giving American manufacturers the certainty they need to invest, innovate, and compete.”

Critics, including the Plastic Pollution Coalition, argue that the bill “creates a system that enables backdoor accounting practices to substantiate marketing claims while promoting chemical recycling,” including “chemical recycling processes that are just turning plastics into fuels.”

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

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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.

EPR Packaging Laws: Key Requirements and Compliance Challenges

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A significant regulatory shift is underway across the United States as multiple states adopt extended producer responsibility (EPR) laws targeting packaging waste.  In 2025, Maryland and Washington State joined a growing list of jurisdictions—including Maine, Oregon, Colorado, California, and Minnesota—that now require producers of packaged goods to engage in one or more of the following: funding or managing recycling programs, reporting material use, and meeting eco-design standards.

Under these laws, companies that introduce packaged goods into covered states often must register with a producer responsibility organization (PRO), submit detailed data on packaging materials, and pay eco-modulated fees based on environmental characteristics such as recyclability, toxicity, and use of post-consumer recycled content.  Maryland’s law is particularly notable for permitting multiple PROs, opening the door to competitive service models.  Washington’s SB 5284, enacted in May 2025, emphasizes equitable access to recycling across rural and underserved communities.

Key elements across state EPR packaging laws include:
  • Mandatory producer registration with PROs or state authorities
  • Annual data submissions on packaging volume, format, and materials
  • Fee structures that reward low-impact design, such as compostability or reusability
  • Coverage of a broad range of industries, including food and beverage, e-commerce, and personal care
  • Implementation timelines beginning in 2025 and accelerating through 2030

Companies should anticipate increased scrutiny of packaging design and growing complexity in compliance as additional states consider EPR legislation.  The resulting patchwork of state requirements will demand careful monitoring and tailored compliance strategies.

Preparing for What’s Ahead

As this regulatory landscape evolves, many companies are beginning to review packaging portfolios, evaluate data collection capabilities, and consider how these rules may affect their compliance, contracting, and product design strategies.  Early engagement with legal, regulatory, and sustainability advisors may help manage risk and identify business opportunities in a more circular packaging economy.

Our team continues to monitor these developments closely and is available to assist with compliance planning, legal analysis, and multi-state tracking strategies tailored to your operational footprint.

California Sues ExxonMobil for Deceptive Marketing on Plastic Recycling

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ExxonMobil deceived the people of California by falsely promoting single-use plastics as sustainable, a complaint filed by California’s attorney general on September 23, 2024, alleges.

The lawsuit, filed in the San Francisco County Superior Court, argues that ExxonMobil conducted a “decades-long campaign of deception” to convince the public that plastics recycling was a sustainable solution to plastic waste, despite knowing that plastics recycling “is technically and economically nonviable to handle the amount of plastic waste [the company] produces.”  ExxonMobil is the largest producer of plastic polymers in the world.

“ExxonMobil’s deceptions undermined consumers’ ability to make informed choices to avoid the catastrophic harms we are experiencing,” the complaint states.  The attorney general asserts that “single-use plastic chokes our waterways, poisons our oceans, harms already endangered and threatened wildlife, blights our landscapes, contaminates the recycling stream, increases waste management costs, pollutes our drinking water, and expands landfills.”

Special focus was given in the complaint to ExxonMobil’s claims about “advanced recycling,” a collection of non-mechanical recycling technologies designed to convert certain plastic wastes into “fuels, chemicals, waxes, and petrochemical feedstock.”  According to the suit, ExxonMobil conceals several key limitations of its advanced recycling program, including that only 8% of processed waste becomes new plastic and that its “certified circular polymers” are made of “virtually no waste plastic.”

The lawsuit alleges violations of state nuisance, natural resources, water pollution, false advertisement, and unfair competition laws.  The complaint seeks abatement funds, disgorgement, and civil penalties.  California’s attorney general reportedly said they want “billions of dollars” for the abatement fund.

It has been reported that ExxonMobil responded by claiming that California officials have known for decades that their state recycling program is ineffective, arguing that the officials “failed to act, and now…seek to blame others.” The company has been quoted as asserting that “[i]nstead of suing us, they could have worked with use to fix the problem and keep plastic out of landfills.”

Class Action Against Coca-Cola for “100% Recyclable” Claims Advances

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A proposed class action against Coca-Cola and other companies selling bottled water can proceed after the plaintiffs provided survey results indicating that consumers may be misled by Coca-Cola’s recyclability claims, the Northern District of California ruled in the case Swartz v. The Coca-Cola Co., No. 3:21-cv-04643.

Crucial to the case are the Federal Trade Commission’s Green Guides, which provide guidance for environmental marketing claims and are codified into California law.  The Green Guides allow marketers to make unqualified recyclable claims “if the entire product or package, excluding minor incidental components, is recyclable” by facilities available to “at least 60 percent” of Californians.

The plaintiffs initially alleged that the defendants’ “100% Recyclable” claims are false and misleading because most of the bottles are not recycled in practice.  The judge rejected that argument, stating that reasonable consumers would not understand the claims “to mean that the entire product will always be recycled.”  The plaintiff’s next complaint placed greater emphasis on the bottles’ caps and labels, which are allegedly not recyclable.  However, the court found inadequate factual support for their claims, which were also undermined because bottle caps and labels constitute minor components under the Green Guides.

The plaintiffs’ newest complaint overcomes those shortfalls, Judge James Donato ruled on April 8, 2024.  The survey results indicate that consumers understand the defendant’s claims to mean the entire bottle (including bottle caps and labels) are recyclable, and the defendants “expressly qualify” their recyclability as “100%.”  As a result, the plaintiffs can plausibly allege that “these representations to consumers are different from” unqualified claims protected by the Green Guides, he said.

The court also determined that there was sufficient factual support for the plaintiffs’ deception claims to move forward.  Because the defendant’s product labels are “disposed of as refuse” by facilities responsible for over 40% of the relevant type of bottle recycling in California, it is plausible that the “defendant’s products are not capable of being ‘100%’ recycled by plants in California,” the court ruled.

The lawsuit consolidates actions brought separately by consumers and the Sierra Club.  In addition to Coca-Cola, the suit names BlueTriton Brands and Niagara Bottling as defendants.  Between the three companies, water bottles are sold under the brand labels Dasani, Deer Park, Poland Spring, Niagara, Kirkland Signature, and others.

 

EPA Releases Draft National Strategy to Prevent Plastic Pollution

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In April, EPA released the Draft National Strategy to Prevent Plastic Pollution. This strategy document, part of EPA’s Series on Building a Circular Economy for All, outlines voluntary actions aimed at eliminating plastic waste released into the environment from land-based sources by 2040. Under this plan, EPA seeks to reduce, reuse, recycle, collect, and capture plastic waste. The draft strategy comprises three primary objectives, each focusing on different aspects of plastic pollution prevention:

Objective A: Reduce pollution during plastic production

This objective emphasizes minimizing pollution throughout the life cycle of plastic products. It encourages manufacturers and consumers to implement upstream actions such as designing products for reuse and recycling, using less impactful materials, and controlling plastic production facilities. Proposed actions include reducing the production and consumption of single-use, unrecyclable, or frequently littered plastic products, as well as minimizing pollution across the entire life cycle of plastic products.

Objective B: Improve post-use materials management

While the National Recycling Strategy identified actions to enhance recycling, this objective expands the focus to other pathways of circularity, including reuse, refill, and composting. Proposed actions involve conducting a study of existing policies and incentives to evaluate their effectiveness, developing or expanding capacity for maximizing material reuse, facilitating effective composting, increasing solid waste collection, enhancing public understanding of plastic mismanagement, and exploring ratification of the Basel Convention for environmentally sound management of scrap and recyclables.

Objective C: Prevent trash and micro/nanoplastics from entering waterways and remove escaped trash from the environment

Proposed actions include implementing policies, programs, and compliance assurance measures to prevent trash and microplastics from entering waterways, improving water management to capture trash in waterways and stormwater/wastewater systems, increasing awareness of the impacts of plastic products in waterways, and coordinating research on micro/nanoplastics.

The agency aims to gauge the importance of different actions, identify key steps and milestones for successful implementation, determine the roles and actions federal agencies should lead, and evaluate potential unintended consequences on overburdened communities. EPA also seeks input on relevant metrics and indicators to measure progress and invites recommendations for additional actions to include in the strategy.

Coca-Cola Wins Greenwashing Case

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The DC Superior Court has granted Coca-Cola Company’s motion to dismiss a 2021 lawsuit filed against it for false and deceptive marketing practices. Plaintiffs argued that the company had falsely represented itself as a sustainable and environmentally friendly company. The 2021 Complaint alleged that Coca-Cola’s representations violate the District of Columbia Consumer Protection Procedures Act (“DC CPPA”) because its marketing and advertising “tend to mislead and are deceptive about the true nature and quality of its products and business.”

The Complaint stated that the marketing is false and deceptive because the company “portrays itself as ‘sustainable’ and committed to reducing plastic pollution while polluting more than any other beverage company and actively working to prevent effective recycling measures in the U.S.” The Complaint cites numerous examples, including:

  • A statement on the Coca-Cola website stating, “Our planet matters. We act in ways to create a more sustainable and better shared future. To make a difference in people’s lives, communities and our planet by doing business the right way.”
  • A statement on the company website stating, “Make 100% of our packaging recyclable globally by 2025. [And] [u]se at least 50% recycled material in our packaging by 2030.”
  • A statement on the company’s Twitter account stating, “Scaling sustainability solutions and partnering with others is a focus of ours.” “Make 100% of our packaging recyclable globally by 2025. [And] [u]se at least 50% recycled material in our packaging by 2030.”

Coca-Cola filed a motion to dismiss in response. The DC Superior Court found that Coca-Cola’s statements were aspirational in nature and, therefore, not a violation of the DC CPPA. The Court stated that Earth Island Institute had not alleged that any statement made by Coca-Cola was provably false or plausibly misleading or that the company misled consumers as to its products’ characteristics. The Court acknowledged that Coca-Cola may have failed to meet advertised environmental goals in the past, but that does not impede its ability to set future environmental goals publicly.  In addition, the Court held that Coca-Cola’s statements were not tied to a “product or service” as required by DC CPPA. None of the statements were included on the bottle of any product or in the marketing of any product. Furthermore, the Court determined that Coca-Cola’s statements are not sufficient to create a misleading “general impression” or a “mosaic of representations” to a reasonable DC consumer as a matter of law under the DC CPPA.

The Court further stated that the Complaint could not prevail because it was based on how Coca-Cola has branded itself, and the DC CPPA does not have any controlling authority on how a brand cultivates its image. Coca-Cola made no specific environmental commitments, which further made it difficult for the Court to take any action. The Court stated that in other similar cases, companies made claims such as “100% recycled and recyclable bottles,” which is concrete and indicative of a promise to customers, as opposed to vague aspirational statements from Coca-Cola, such as the recyclable packaging by 2025.

Partnering with EPA's Design for Environment at Walmart Sustainable Products Expo.

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EPA is a significant partner to companies leading innovation efforts in the arena of safer consumer products, according to Assistant Administrator Jim Jones, of EPA’s Office of Chemical Safety and Pollution Prevention. In a blog post yesterday, Jones describes how EPA’s Design for Environment (DfE) program recently participated in a “Supplier Panel on Sustainable Chemistry” at Walmart’s first ever Sustainable Products Expo, which brought together leaders from EPA, NGOs, and product manufacturers.

As we have previously discussed, EPA’s DfE program – which establishes voluntary sustainability-related standards for consumer products like household cleaners – plays a major role in Walmart’s Sustainable Chemistry Initiative. Jones writes that EPA’s contribution is “providing scientific expertise and understanding of health and environmental impacts throughout the supply chain, educating consumers and companies alike, and bringing people to the table to stimulate dialogue and partnerships.” Jones notes that with “growing consumer recognition” and trust for the DfE’s “Safer Products” label and program criteria, EPA’s partnerships with companies like Walmart and its participating suppliers can promote sustainability, health, and the environment while meeting consumer demand and growing their business.

The Expo also featured announcements from Walmart and its suppliers of various new sustainability commitments and initiatives. One such initiative is the Closed Loop Fund, which will invest $100 million seeded from suppliers including Coca-Cola, Pepsico, and Johnson & Johnson in recycling infrastructure with the goal of “transforming the recycling system in the United States.” Cargill made commitments to increase supply chain transparency in beef and Procter & Gamble pledged to reduce water use for liquid laundry detergent. Together, the suppliers participating across all of these voluntary sustainability efforts account for over $100 billion in sales at Walmart.