WASHINGTON, D.C. (July 30, 2025) – Today the National Association of Wholesaler-Distributors filed a lawsuit against the Oregon Department of Environmental Quality and others in the United States District Court for the District of Oregon challenging the constitutionality of Oregon’ s Plastic Pollution and Recycling Modernization Act. The Act creates an “extended producer responsibility” (EPR) program intended to encourage a circular economy and modernize the state’s recycling program. Unfortunately, as enacted the act misses the target and threatens the viability of the wholesale distribution industry nationwide – the cornerstone of America’s supply chain.

“While NAW supports the goal of a circular economy, the Oregon EPR law as enacted is unconstitutional, creates new mandates, inhibits interstate commerce and fails at its primary goal of encouraging circularity,” said Eric Hoplin, President and CEO. “Rather than encourage sustainability through a uniform and transparent system where compliance burdens are shared across industries, Oregon chose to shift the burden to the parts of the supply chain that have little to no control over decisions to design, reduce, reuse or recycle a product.”

NAW’s lawsuit alleges that with this law Oregon unconstitutionally:

• Delegates control over the EPR program, including the setting of fees wholesaler-distributors must pay to a private, third-party group (the Circular Action Alliance (CAA)), with a financial interest in the program without clear rules or oversight.
• Unfairly targets out-of-state producers, disrupts national markets, and tries to control business outside of Oregon—violating the U.S. Constitution’s limits on state regulation of interstate commerce.
• Mandates producers sign contracts with a single approved private organization (CAA) giving up their economic freedom and due process rights.
• Subjects producers to fees and rules set by CAA without a real chance to object or appeal or transparency in the process.

About NAW
The National Association of Wholesaler-Distributors (NAW) is one of America’s leading trade associations, representing the $8.2 trillion wholesale distribution industry. Founded in 1946, NAW includes national, regional, and state employers of all sizes, as well as industry trade associations and stakeholders across every distribution sector. The industry employs over 6 million workers nationwide and accounts for nearly one-third of U.S. GDP. Learn more at www.naw.org.

Media Contact: Meghan Cieslak, [email protected]