Attor­ney Gen­er­al Ken Pax­ton Files Mul­ti­state Law­suit Along­side Nation­al Asso­ci­a­tion of Whole­saler-Dis­trib­u­tors to Chal­lenge California’s Plas­tics Act and Pro­tect Busi­ness­es from Cost­ly Regulations

Attorney General Ken Paxton joined a coalition of state attorneys general and the National Association of Wholesaler-Distributors (“NAW”) in challenging California’s Plastics Act to defend the interests of producers and consumers across the United States. The lawsuit seeks to stop a regulatory scheme that would drive up costs on everyday goods, which would burden American families and the businesses that serve them. 

California has enacted the Plastic Pollution Prevention and Packaging Producer Responsibility Act (“the Plastics Act”). This Act imposed extensive requirements on manufacturers, distributors, and companies that package or ship products in plastic containers or use other types of packaging materials that merely incorporate plastics. This law impacts all packaging and goes well beyond regulating plastic. It regulates aluminum, cardboard, paper, glass, and even wood. The Plastics Act conditions access to California’s markets on radical changes to packaging design, production, and waste disposal and imposes fees that discriminate against out-of-state businesses. The economic ramifications are significant. The Plastics Act’s onerous requirements are expected to drive up prices on everyday goods for the American people. 

“I am challenging California's Plastics Act to protect businesses from unnecessary regulations and Texans from higher costs on the products they use every day,” said Attorney General Paxton. “Texas has always been a place where businesses can thrive, and I will ensure it remains that way. I will not allow California lawmakers to harm Texas businesses.” 

“California is not entitled to pronounce nationwide policies,” said Eric Hoplin, President and CEO of NAW. “Because the Act extends California’s regulatory reach far beyond its borders and brings within its sweep conduct wholly unconnected to California, the Act violates principles of federalism, the horizontal separation of powers, and due process.” 

The coalition also raises serious concerns about the Act's delegation of regulatory and enforcement authority to the Circular Action Alliance (“CAA”). The CAA is an unelected, privately controlled organization operating with minimal state oversight. The Alliance is empowered to collect up to $500 million annually from businesses seeking access to California's market, with little transparency or accountability to the public or to the businesses it regulates. The lawsuit seeks to stop the enforcement of the Act with a declaratory judgment that it violates both the United States Constitution and the California Constitution. 

To read the filing, click here.