NAW Sues Over Oregon Recycling Law

The trade group contends it is unconstitutional and poses a threat to the entire distribution sector.

I Stock 951776968
iStock.com/elvis901

The National Association of Wholesaler-Distributors on Wednesday announced that it had filed a legal challenge to a sweeping overhaul of Oregon’s recycling program.

Oregon lawmakers passed what was titled the Plastic Pollution and Recycling Modernization Act in 2021. The measure took effect at the beginning of 2022, but changes to the state’s recycling program only began in July.

The measure reportedly aimed to establish programs, like those long used in Canada and Europe, that require companies to help fund recycling efforts. The Oregon law, according to Oregon Public Broadcasting, stipulates that companies that sell or distribute plastic, paper or foodservice products register with the state and pay fees.

Oregon officials say the law would leverage "the resources of producers to create an innovative system that works for everyone."

NAW officials, however, argued that the measure is unconstitutional on several fronts, including the Commerce Clause, which restricts state regulations on interstate commerce. The trade group suggested that it would also threaten “the viability of the wholesale distribution industry nationwide.”

The Oregon law, NAW President and CEO Eric Hoplin added in a statement, seeks 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."

The filing asked the U.S. District Court in Oregon to declare the law "invalid and unenforceable," issue a permanent injunction on its implementation and enforcement, and award legal fees and "such other relief as the court deems just and proper."

More in Operations