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Oregon Packaging Recycling Law Faces Landmark Court Trial as Industry Challenges New Fee Rules


SEATTLE (Recycling Monster): Oregon's Recycling Modernization Act is facing a legal battle in federal court, the outcome of which could have a great influence on the future of packaging recycling laws across the U.S. The five-day trial began this week in Portland.

The lawsuit was filed by the National Association of Wholesaler-Distributors, which argues that Oregon's law places an unfair burden on businesses and violates constitutional protections related to interstate commerce.

The case also questions the role of the nonprofit organization, Circular Action Alliance. According to industry groups, the organization lacks transparency in setting charges and determining which companies must participate.

The outcome of the case is expected to have wider implications, as several other U.S. states have introduced similar extended producer responsibility (EPR) laws. A ruling in Oregon could influence ongoing legal challenges and the future implementation of packaging recycling programs nationwide.

Introduced in 2021, the Recycling Modernization Act requires producers of packaged goods to contribute toward recycling and waste management costs. The fees will depend on various factors such as packaging weight and how easily the materials can be recycled. Smaller businesses with annual revenue below $5 million are exempt from the program.

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