Group Appealed Judgment on Oregon Recycling Law
The National Association of Wholesaler-Distributors challenged a ruling that upheld Oregon's producer responsibility act.
Updated on Sept. 28, 2026 in Law
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The National Association of Wholesaler-Distributors has filed an appeal with the US Court of Appeals for the Ninth Circuit regarding Oregon's Plastic Pollution and Recycling Modernisation Act. A district court judgment previously affirmed the state legislation on August 27.
Why it matters
The association argues the law violates the dormant Commerce Clause by imposing financial burdens on distributors and challenges the transfer of administrative authority to the Circular Action Alliance as a breach of the Due Process Clause.
The association is contesting a statute that empowers the Circular Action Alliance to calculate mandatory payments using a confidential formula. This litigation is part of a broader pushback, with the association also targeting similar EPR laws in California and Colorado.
The players
National Association of Wholesaler-Distributors
This is a trade association representing the wholesale distribution industry in legal and policy matters.
Circular Action Alliance
This private entity is responsible for administrative oversight and fee structures under Oregon's recycling law.
US Court of Appeals for the Ninth Circuit
This is the federal appellate court currently hearing the appeal regarding the validity of the state legislation.
The details
The legal dispute centers on how Oregon manages packaging waste through its modernization act, which requires contributors to resolve fee disputes through compulsory arbitration. The challenge asserts that the state's regulatory framework creates an unconstitutional process by delegating oversight to a private entity.
Timeline
July 2025: The National Association of Wholesaler-Distributors filed the original lawsuit.
February 2026: A district court issued a preliminary injunction for association members.
July 2026: The first federal constitutional trial regarding the state EPR law was held.
August 27, 2026: A court judgment affirmed the validity of the state packaging act.
Political Context
Critics of the law, led by wholesaler groups, argue that the transfer of regulatory power to the Circular Action Alliance creates a lack of transparency that violates constitutional protections. Opponents of this lawsuit maintain that such EPR laws are essential tools for state-level environmental management that fall within the scope of local legislative authority.
The ongoing litigation could delay the implementation of fee structures that impact businesses across Oregon. Residents may see changes in how materials are processed as the state navigates these legal challenges to its waste management system.
The takeaway
This case highlights the growing tension between private entities managing waste programs and the wholesalers tasked with funding them. Stakeholders should monitor appellate rulings as they will likely dictate how other states design their own recycling frameworks.
Further reading
For more background on state-level regulatory disputes, visit Law.
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Should states mandate that manufacturers and distributors manage the disposal of their product packaging?
