Oregon Packaging Law Trial: Industry Fights Back

A trial began this week in Portland, Oregon, to address a legal challenge against the state's Recycling Modernization Act. This law, enacted in 2021, was the first in the nation to mandate that companies cover some end-of-life packaging disposal costs. The wholesale product distribution industry, represented by the National Association of Wholesaler-Distributors, filed a lawsuit in July 2025, alleging the act is unconstitutional and obstructs interstate commerce.

The core of the dispute centers on fees imposed on producers, calculated by the weight and recyclability of their packaging. These fees are intended to encourage the use of lighter, more sustainable materials and shift disposal costs from consumers to manufacturers. The law exempts companies with less than $5 million in gross revenue. Six other states have since adopted similar packaging laws, making the Oregon trial potentially influential for their implementation.

During the trial's first day, arguments focused on the role of the Circular Action Alliance, a nonprofit chosen by Oregon's environmental department to manage the fee collection and investment of revenue. Wholesalers contend that the alliance, as a private entity, is performing governmental functions with insufficient transparency regarding fee structures. The alliance defends its operations, stating fee confidentiality is necessary and that the methodology was approved by state regulators.