PORTLAND — Oregon’s landmark packaging law went on trial Monday in U.S. District Court here, marking the first judicial test of a policy that requires companies to shoulder some of the costs of their products’ packaging at end of life.
Industry challenge could reshape recycling rules beyond Oregon
Attorneys for the National Association of Wholesaler-Distributors (NAW) stood before Federal Judge Michael Simon to argue that Oregon’s Recycling Modernization Act is unconstitutional and hampers interstate commerce. The trade group, which represents a wholesale distribution sector it values at $8.2 trillion, filed the lawsuit in July 2025 after the first bills under the new law were sent to producers and distributors.
The NAW represents companies that buy products in bulk, repackage them and resell to retailers and consumers — including firms in food, beverage and electronics distribution. The plaintiffs contend the state law unfairly burdens that chain of supply and conflicts with federal commerce protections.
- The law, passed by the Oregon Legislature in 2021, sets statewide recycling standards and creates packaging fees based on material weight and recyclability.
- Fees are lower for products with less packaging or reusable packaging; producers with gross revenue of $5 million or less are exempt.
- At least six other states have since adopted similar packaging rules; those statutes are being challenged or could face legal action tied to this case.
The trial is scheduled for five days in Portland. Its outcome could influence how other states implement or defend comparable programs, changing how states approach the growing problem of packaging waste and who pays to manage it.
| Item | Detail |
|---|---|
| Industry represented | $8.2 trillion wholesale distribution sector |
| Small-producer exemption | Gross revenue under $5 million |
| Similar laws elsewhere | Six other states have passed comparable packaging laws |
Supporters of the law say it aims to shift costs now borne by businesses and households back to producers, encouraging lighter and more recyclable packaging. Opponents argue the fees will raise costs for resellers and hamper interstate commerce. The NAW’s challenge targets the constitutional authority of a single state to impose those sorts of fee obligations on national distribution chains.
For Oregon consumers and local governments, the stakes are practical: if the law stands, producers will pay a portion of disposal costs that currently fall on municipalities and residents. If the law is struck down, states that have followed Oregon’s lead may face similar legal setbacks, and policymakers will need different tools to address packaging waste.
The next several days of testimony and legal argument in Portland will be watched closely by state officials, environmental groups, manufacturers and wholesalers across the country as they decide whether to adapt their practices or pursue further litigation.
