Page 56 - Plastics News August 2026

INTERNATIONAL NEWS
NAW Files Lawsuit Challenging Colorado Recycling Law
he National Association of Wholesaler-
Distributors (NAW) has started a federal
Tcourt case against Colorado’s Producer
Responsibility Program for Statewide Recycling
Act (House Bill 22-1355), which created the US
state’s extended producer responsibility rules
for packaging. The trade group submitted a
request for a preliminary injunction, seeking to
stop the law from being enforced until the case
is decided. Andrew Morris and Jacob Huebert
of the New Civil Liberties Alliance (NCLA) rep-
resent NAW, the only plaintiff in this case.At
the centre of the challenge is Colorado’s use of
the Circular Action Alliance (CAA), a private or-
ganisation based in Washington, DC, to set and
collect charges on packaging such as glass, alu-
minium, paper, cardboard and plastic. NAW says
the pricing system used by CAA is confidential.
The complaint states that companies covered
by the charges cannot contest the assessments
in court. Instead, disputes are limited to binding
arbitration administered by CAA.
NAW says the statute breaches the US Constitu-
tion in several ways. It argues the state handed
fee-setting powers to a private body without
sufficient limits or supervision, while denying
businesses court review, which it says conflicts
with the 14th Amendment’s Due Process clause.
The group says the law forces companies to join
and fund CAA to operate in Colorado, which it
60 PLASTICS NEWS
claims violates the First Amendment.
It further argues that businesses are barred from
telling customers about required state-imposed
charges, and that compulsory dues can be used
by CAA to support policy or political positions
that members may not share. NAW draws a
comparison with California’s SB 54, saying Colo-
rado likewise prevents businesses from inform-
ing customers about the fees they must pay. The
association pointed to a February 2026 ruling in
Oregon, where a federal court granted prelimi-
nary injunctive relief to NAW members challeng-
ing a similar EPR regime.
NAW has also joined a 17-state coalition, as the
only business plaintiff, in a separate federal chal-
lenge to California’s SB 54.
NAW president and CEO Eric Hoplin said: “This
is now the third EPR lawsuit we’ve been involved
with filing. While each state law has its own idio-
syncratic differences, our overarching challenge
remains the same.
“No state should limit interstate commerce, nor
should they delegate power to set and collect
fees to a third party outside the scope of public
scrutiny. NAW and its members support the goal
of a circular economy, but Colorado’s EPR law
does not get us closer to advancing that goal.”
August 2026