In October 2021, California Governor Gavin Newsom signed a package of six bills aimed at reducing plastic waste, improving recycling efforts and clarifying labeling standards for recyclables and compostables. These new laws mark a renewed effort to promote recycling and regulate green advertising, and could mean significant changes for many companies.
The package of bills includes the following：
SB 343: Authenticity of recyclables labeling. Products and packaging must meet new, stricter specifications in order to be labeled recyclable and carry the chase arrow symbol (i.e., the Möbius ring).
AB 1201: Authenticity of compostable labels. Products and packaging must meet new, stricter specifications in order to be labeled compostable.
AB 1276: Disposable food utensils and packaged condiments. Dine-in customers must request plastic utensils, straws, and condiment packets. Restaurants may ask drop-off-free customers if they want them.
AB 818: Disposable wipes. Requires "Do Not Rinse" labels on certain wipe products.
AB 881: Exported Waste. Designed to reduce the export of mixed plastics that ultimately cannot be recycled.
AB 962: Reusable Glass Bottles. Expands the current program in which the state pays a per-bottle recycling fee for those who recycle glass by crushing it and melting it into new glass, and also includes those who wash and reuse bottles.
By far the most prominent effort to regulate environmental marketing claims is the Federal Trade Commission's ("FTC") Guidance on the Use of Environmental Marketing Claims, commonly referred to as the "Green Guides," originally published in 1992 at 16 CFR Part 260. The FTC has issued green guidelines to ensure that the environmental claims marketers make about their products and services are truthful and substantiated. As institutional guidelines, they do not have the force of law and are not independently enforceable. However, if a marketer makes an environmental claim that is inconsistent with the Green Guides, the FTC has the ability to take action under Section 5 of the FTC Act, which prohibits unfair or deceptive practices.
Most impactful to many advertisers are the higher requirements for recyclable and compostable labels in SB 343 and AB 1201, which go well beyond the impact of the Green Guide. For recyclability, SB 343 requires Cal Recycle to develop a list of commonly recycled materials in the state's facilities by Jan. 1, 2024. According to the report, the law states that only products that meet the following requirements can be labeled as "recyclable".
- The product is collected in a curbside recycling program that covers at least 60% of the state's population.
- Can be classified into defined categories.
- It can be recycled in an appropriate facility.
Products collected by non-curb-side programs can only be marked as "recyclable" if the program "recycles at least 60% of the products or packaging in the program" and the materials can be sorted and aggregated in defined categories. Eighteen months after the Cal Recycle release list (and after each update to the list), manufacturers must ensure that their products meet the new standards. This means that the company will start selling new products in 2025.
Companies responsible for labeling products as compostable should be aware that AB 1201 requires anyone selling products labeled as "compostable" or "home compostable" to ensure that these products meet the applicable ASTM standard specifications.
