California’s Landmark Recyclability Law Halted

A federal court has temporarily blocked enforcement of California’s law, SB 343, which limits recyclability claims. On July 14, the U.S. District Court for the Southern District of California issued a preliminary injunction barring enforcement of SB 343, which was scheduled to take effect on October 4, 2026 and would significantly restrict the materials and products that may be advertised or labeled as recyclable, including through the use of the chasing arrows symbol. The law carries substantial penalties and was set to have a significant impact on product design, packaging and marketing across a variety of industries, given the scale of the California market.

SB 343, also referred to as the “Truth in Recycling” law, generally allows producers to make recyclability claims only for products or packaging of a material type and form that are actually collected for recycling by jurisdictions that encompass at least 60% of the population of the state and processed by facilities that serve 60% of the state’s recycling programs (the “60/60 requirement”). The manner by which the items are reclaimed must also be consistent with the guidelines set forth by the Basel Convention.    

The legal challenge to SB 343, California League of Food Producers et al. v. Bonta, was brought by several trade associations representing members of the food packaging industry. Plaintiffs have argued that SB 343’s requirements are unconstitutionally vague under the Due Process Clause of the Fourteenth Amendment and impermissibly restrict commercial speech under the First Amendment. The court found that the plaintiffs are likely to succeed on the merits of their vagueness claim. The court also found that the plaintiffs sufficiently demonstrated a likelihood of success on their First Amendment claims and would suffer irreparable harm in the absence of injunctive relief due to compliance, redesign, and relabeling costs. Finally, the court concluded that California had not adequately shown that the law's restrictions would directly advance the state's goals of improving recycling rates and reducing consumer confusion. 

The preliminary injunction broadly prohibits the California Attorney General and other agencies from enforcing SB 343 until further order of the court. Consequently, companies may consider whether to pause or reassess any ongoing redesign or relabeling efforts while the litigation proceeds. 

Additionally, although the preliminary injunction is limited to enforcement of SB 343, the decision also may have implications beyond product labeling because of the law's connection to California's extended producer responsibility (EPR) program, established under the Plastic Pollution Prevention and Packaging Producer Responsibility Act (SB 54). SB 54 establishes an extensive producer responsibility framework for single-use packaging and plastic food service ware, requiring producers to fund recycling and waste management programs while meeting various source reduction and recycling targets. SB 54 relies on aspects of SB 343's recyclability framework, including standards used to determine whether covered materials are considered recyclable in California. Although the preliminary injunction does not invalidate or otherwise stay implementation of SB 54, it introduces uncertainty regarding implementation of recyclability-related requirements that rely on SB 343's criteria. As a result, developments affecting SB 343 may have downstream implications for California's EPR regime—which itself is also subject to legal challenges from both industry and environmental groups. 

The SB 343 injunction is unlikely to be the last word on California's recyclability framework, given the pending litigation and the interdependence between SB 343 and SB 54. Companies potentially subject to either law should closely track these developments, assess how the injunction may affect current or planned compliance, redesign, and labeling strategies, and remain prepared to adapt as the litigation over both SB 343 and SB 54 proceeds.

To receive the latest ESG developments globally, subscribe to the Freshfields Sustainability Blog.