Federal Recyclability Labeling Bill Would Impose National Criteria, FTC Enforcement
In August, Senator Jeff Merkley (D-OR) and Representative Lou Correa (D-CA) introduced bicameral legislation that would establish national criteria and standardized labels for marketing packaging, food service products, and beverage containers as recyclable, compostable, reusable, or refillable.
H.R. 10048 and S. 5302, both introduced August 6, 2026, are House and Senate companion versions of the Truth in Labeling Act of 2026 and are substantively identical, aside from minor textual differences.
The House version has been referred to the House Committee on Energy and Commerce, and the Senate version has been referred to the Senate Committee on Commerce, Science, and Transportation.
Purpose and Findings
The Truth in Labeling Act states that there is significant consumer confusion about which covered materials are recyclable, compostable, reusable, or refillable, and identifies inconsistent labeling and improper use of the chasing arrows symbol as sources of consumer confusion. The legislation also states that the Federal Trade Commission’s (FTC’s) Green Guides are outdated and do not provide sufficient information to establish labeling criteria at the national level.
According to the bill’s sponsors, unclear or misleading labels can result in materials being placed in the wrong waste stream, contributing to contamination and making recycling and composting systems less effective.
The legislation is intended to create consistent national standards so that environmental labeling claims better reflect how materials are actually collected and processed.
What the Bill Would Do
The Truth in Labeling Act would establish nationwide definitions and labeling standards for the terms “recyclable,” “compostable,” “reusable,” and “refillable.” The requirements would apply to covered materials: packaging, food service products, and beverage containers. They apply when a producer chooses to label a covered material or is contractually obligated to. A producer is the person who affixes, or directs another to affix, a chasing arrows symbol, label, or other marking indicating recyclability, compostability, reusability, or refillability. It also includes a person who later modifies a properly labeled material so that it no longer qualifies.
A covered material that does not meet the applicable criteria could not display a label or marking, including the chasing arrows symbol or its equivalent, that would lead an ordinary consumer to believe the material is recyclable, compostable, reusable, or refillable.
EPA, in coordination with the FTC and with input from an advisory committee the bill would create, would issue regulations for determining whether a covered material meets the criteria. For recyclability and compostability, it would also describe acceptable qualified claims. EPA would also be required to establish or approve standardized on-package labels within two years of enactment. The standardized labels would include harmonized terminology and iconography and could be supplemented by standardized digital labels, such as QR codes.
EPA would also publish lists of covered materials that meet the criteria.
Recyclable Criteria
A covered material would be considered “recyclable” if it:
- Is made in accordance with the design guidelines of the relevant industry, if approved by the EPA Administrator;
- Does not include any components, including inks and adhesives, that prevent the material from being recycled, unless it includes on-package instructions describing how to remove and properly dispose of a separable component;
- Is collected, separated, or otherwise recovered from the waste stream through an established recycling program for which a responsible end market exists that covers at least 60% of consumers or communities where the item is sold; and
- Has a commercial value for recycling and a responsible end market.
A covered material that only meets criteria 1, 2, and 4 may still be eligible for a qualified recyclability claim, provided that:
- The recycling program covers at least 40% of consumers or communities; and
- The EPA Administrator has approved a plan for the covered material to be considered recyclable within two years of approval.
Converting covered materials into fuel, or using them to generate electricity, heat, or steam, would not be considered recycling and would not count toward the 60% or 40% thresholds.
The bill would also require all plastic covered materials to bear a resin identification code. The code could not be placed inside a chasing arrows symbol unless the material meets the recyclability criteria and inside placement is the only physically feasible placement, as determined by EPA. This provision would preempt any conflicting state requirement.
Compostable Claims
A covered material would be considered “compostable” if it:
- Is designed to be compostable in accordance with the design standards and guidelines of its industry;
- Adheres to ASTM International 6400, 6868, or equivalent standard specifications, and does not contain intentionally added PFAS or heavy metals incompatible with compost;
- Is capable of being collected and accepted by at least 50% of the established composting programs in the US; and
- Is processed by itself or with other covered material categories through controlled biological degradation to make compost or a substantially similar soil amendment.
A covered material that is capable of being collected and accepted by at least 30% of the established composting programs in the US and meets criteria 1, 2, and 4 would be eligible for a qualified claim.
The legislation also specifically prohibits non-compostable plastic or plastic-lined covered material from marketed in a way that might mislead the public, such as green or brown tinting or coloring.
Reusable and Refillable Claims
A covered material could be labeled “reusable” or “refillable” if it:
- Is designed to be reusable or refillable in accordance with the relevant industry design standards and guidelines;
- Is designed for durability and maintenance to extend the useful life of the covered material and to reduce demand for new production of the covered material;
- Can be recirculated or refilled multiple times for the same or a similar purpose in the original format of the covered material;
- Is supported by a system or physical infrastructure that is in place to ensure the possibility and likelihood of reuse or refill, provided by a producer or a third party, and designed for convenient reuse or refill; and
- is not intended for single use by a consumer.
Deadlines and Enforcement
Enforcement would begin two years after EPA establishes or approves the standardized labels, which are themselves due within two years of enactment. After that, selling, using, distributing, or importing a covered material in violation of the Act would be a deceptive practice under the FTC Act.
The legislation would make exceptions for covered material manufactured more than six months prior to that date. It makes similar exceptions if the criteria are changed and provides a safe harbor for materials on EPA’s published lists.
Apart from the resin identification code provision, the bill would not preempt state law.
State-Level Litigation
The proposed federal standards come as similar recyclability labeling requirements face legal challenges at the state level. As discussed in a previous post, a federal court recently blocked on a preliminary basis enforcement of California’s “Truth in Recycling” law after concluding that challengers were likely to succeed on First Amendment and vagueness claims.
Among other requirements, California’s law generally required products and packaging to satisfy a “60/60” standard for collection and processing before recyclability claims could be made. The Truth in Labeling Act similarly incorporates a 60% threshold into its federal recyclability criteria, although the federal proposal establishes a different regulatory framework and expressly provides for qualified recyclability claims at a lower threshold.
