Dive Brief:
- The National Association of Wholesaler-Distributors secured a preliminary injunction blocking enforcement of Oregon’s extended producer responsibility for packaging law against NAW members.
- The action came out of an evidentiary hearing in an Oregon court on Friday and is expected to hold until at least July, when a five-day court trial is scheduled.
- “This is a major win for NAW member companies who have been dramatically impacted by the exorbitant fees imposed under the law by the Circular Action Alliance,” said NAW President and CEO Eric Hoplin in a statement. “NAW looks forward to presenting its case on the merits when the Court hears our case on July 13.”
Dive Insight:
Oregon was the first state to launch a packaging EPR program, which charge producers fees to cover recycling costs. Shortly after that milestone in 2025, NAW filed a lawsuit in the U.S. District Court for the District of Oregon last July claiming that Oregon’s newly enacted packaging EPR program is unconstitutional on multiple grounds. It named the Oregon Department of Environmental Quality, the Oregon Environmental Commission and Oregon’s attorney general as defendants.
NAW previously said that wholesalers should not be considered producers, as they function as a “middle man” in supply chains. NAW’s complaint highlighted the Plastic Pollution and Recycling Modernization Act’s “unprecedented breadth, scope, and complexity” among EPR programs. It also said the law burdened interstate commerce and that producers have no recourse to challenge CAA’s fee methodology, among other concerns.
NAW believes the law inhibits interstate commerce and also disputes aspects of how the selected producer responsibility organization is operating, among other issues.
In November, NAW escalated the situation by filing a motion for a preliminary injunction to suspend enforcement of the law, aiming to avoid members paying another round of fees.
In the latest development in that case, a judge on Friday ruled that NAW’s claims citing the dormant commerce clause and due process clause of the 14th amendment held water. But the court also granted in part the defendants’ motion to dismiss, including claims against members of Oregon’s Environmental Quality Commission. The court dismissed claims related to unconstitutional conditions and equal protection under Oregon’s Constitution. NAW has the opportunity to replead all dismissed claims on or before Feb. 20.
A pretrial conference is scheduled for July 1, with a trial set to begin July 13.
Circular Action Alliance, the producer responsibility organization helping to implement Oregon’s program, is not a party to the lawsuit. Larine Urbina, senior vice president of communications, said via email that the group remains focused on program implementation and “there are no changes to CAA’s operations in Oregon.”
CAA is requiring other producers to report their 2025 data by May 31 to inform payments in January 2027.
Oregon currently has other waste diversion laws in place, including stewardship programs for electronics and mattresses, as well as a long-standing bottle bill.
Editor’s note: This story has been updated with a comment from CAA.
