Legal & Regulatory Issues
NAW Sues Oregon Over Recycling Mandate Fees Targeting Distributors
July 31, 2025
Legal & Regulatory Issues
The association says the state’s law is driving unexpected and unsustainable costs for businesses across the interstate supply chain.
The National Association of Wholesaler-Distributors (NAW) has filed a motion for a preliminary injunction in federal court to suspend enforcement of Plastic Pollution and Recycling Modernization Act (RMA), the state statute underlying Circular Action Alliance (CAA)-run “extended producer responsibility” (EPR) program in Oregon
NAW argues the law — effective July 1 of this year — imposes an opaque, privately governed regulatory system that burdens distributors across interstate supply chains with retroactive fees and compliance obligations beyond their control.
Premium Q&A: What Distributors Should Know about Extended Producer Responsibility Laws (Aug. 1)
According to NAW:
“Rather than improve recycling outcomes, Oregon’s program operates as a closed regulatory system run by private interests, with binding financial consequences for businesses that have no control over packaging design or disposal,” said Brian Wild, NAW’s Chief Government Relations Officer. “Our members’ July invoices show a system that is unpredictable, opaque and economically unsustainable. With January assessments approaching and no transparency into how fees are set, businesses are facing uncertainty, instability and costs they cannot absorb.”

In its lawsuit filed July 30, 2025, NAW argues that the RMA violates several constitutional protections, including:
NAW is requesting the court declare the law invalid and permanently enjoin its enforcement, or at minimum pause enforcement pending resolution.
If granted, the injunction could pause obligations under the RMA — including reporting, payment and risk of penalties — relieving distributors from what NAW describes as “imminent and irreparable harm.”
More broadly, the case could influence how EPR packaging laws are structured and enforced in other states. Several states — including Colorado, California and Minnesota — are considering or implementing packaging-EPR frameworks. NAW has indicated it is closely reviewing these developments for potential legal or advocacy actions.
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