Federal Lawsuit Challenges Oregon’s EPR Law

August 14, 2025 | The National Association of Wholesaler-Distributors (NAW) has filed a lawsuit in federal court challenging Oregon’s Plastic Pollution and Recycling Modernization Act, which established the state’s extended producer responsibility (EPR) program for packaging. EPR policies shift responsibility for recycling and waste management from consumers and municipalities to the companies that make or sell products, with the goal of creating more sustainable packaging and recycling systems.

Filed July 30 in the U.S. District Court in Oregon, the lawsuit names the Oregon Department of Environmental Quality (DEQ) Environmental Quality Commission (EQC), and Attorney General as defendants. NAW argues that the law gives excessive authority to the Circular Action Alliance (CAA), the state’s only approved producer responsibility organization (PRO), in violation of Oregon’s constitution. According to the complaint, the CAA can set fees, incentives, and penalties without sufficient state agency oversight.

The case also claims the law is unconstitutional because it burdens interstate commerce and forces out-of-state producers to redesign packaging solely for Oregon markets. Additional claims include violations of due process rights, since producers may only challenge CAA decisions through binding arbitration, and argues that the law imposes unconstitutional conditions on companies seeking to sell products in the state.

NAW is asking the court to declare Oregon’s Plastic Pollution and Recycling Modernization Act as unconstitutional and prevent its enforcement. The Oregon Attorney General’s office is expected to respond in the coming weeks.

The Toy Association™ will closely monitor developments of this lawsuit and will keep members informed of any updates.

The Toy Association will continue to track rulemaking, implementation, and enforcement of state extended producer responsibility (EPR) laws. For more information on The Toy Association’s advocacy initiatives at the state level or to join the State Government Affairs Committee, members may contact Charlotte Hickcox, director of state government affairs, or Lindsey Hueer, senior manager of state government affairs.