The first legal challenge and its implications
As Extended Producer Responsibility (EPR) laws gain a tentative foothold in the United States, the fragile ecosystem risks derailment as it faces its first major legal hurdle in Oregon.
What are EPR laws?
EPR laws are designed to shift the cost of managing packaging, paper, and food service ware waste from local governments to the companies that place these materials on the market. The overarching goals of EPR laws are to reduce waste, improve recycling, and encourage more sustainable packaging choices. Globally, EPR is gaining traction as the only policy mechanism with both the scale and enforcement power to drive a circular economy.
Current Status
As of mid-2025, seven U.S. states—including California, Oregon, and Colorado—have enacted packaging EPR legislation, with roughly 10 other states considering similar bills. Oregon’s 2021 Plastics Pollution and Recycling Modernization Act (RMA) stands as the nation’s first live program, as of July 1, 2025, and is a critical reference point for stakeholders nationwide.
Complaint
On July 30, 2025, the National Association of Wholesaler-Distributors (NAW), a national trade organization, filed a lawsuit against Oregon’s Department of Environmental Quality (DEQ), Environmental Quality Commission (EQC) and the Attorney General (AG) in an Oregon federal court.
The complaint alleges that the defendants, who are responsible for implementing the RMA, unconstitutionally delegated regulatory authority to a private third-party entity (Circular Action Alliance – “CAA”) without clear legislative guidance. The complaint also alleges that the RMA violates interstate commerce rules, imposes constraints on the economic freedom of producers through mandatory contracts, and offers limited transparency or recourse on fees and compliance rules.
As the complaint seeks remedies under both Oregon and US federal laws, the outcome of the lawsuit could have far-reaching consequences and recalibrate EPR programs nationwide.
Immediate Considerations
Firstly, it is important to note that the RMA remains in force while litigation proceeds. In the meantime, it would behoove producers to:
§ Identify and confirm obligatory producer status - EPR laws define producer hierarchies, with the goal of identifying one responsible entity for the material. Producers are responsible for making sure they coordinate with their supply chains to identify obligated parties to avoid duplicative effort.
§ Understand and leverage all exemptions - For example Oregon, Colorado and California offer exemptions for small businesses. Similarly, not all packaging material is covered. Case in point, Colorado excludes most business-to-business packaging.
§ Maintain thorough documentation of supply data - Any adjustments or rebates resulting from the Oregon lawsuit could be predicated on the availability of reliable and auditable data.
Navigating the Road Ahead
The road to a circular economy will be paved with challenges as companies balance the cost of advancing societal sustainability goals with their internal financial imperatives. The trend, however, is clear — international regulation and consumer demand will drive change in the long term and companies will need to take responsibility for the waste that they help create.
