California's Rapidly Incoming SB 343 And SB 54: Anti-Greenwashing Laws Going Too Far?

• "Recyclability" claims and labels in California will soon face increased regulatory scrutiny as the state implements new rules that cut against many common practices required by other states.
• SB 343, a recycling false advertising law, greatly restricts what products and materials can say "recycle me" or include the chasing arrows recycling logo.
• SB 54 pushes businesses to increase the recyclability of serviceware and packaging for food.
• Both laws are interconnected, and businesses may face regulatory pitfalls and litigation if they follow practices common nationwide, and fail to adapt to California-specific requirements.

California is preparing to dramatically change how businesses can label products as "recyclable," potentially clashing with requirements in other states. Incoming requirements under SB 343 and SB 54 will and already are reshaping packaging rules and recycling practices in the state. SB 343, the Truth in Labeling Law, targets misleading recyclability claims, while SB 54, the Plastic Pollution and Packaging Producer Responsibility Act, focuses on reducing single-use plastics and increasing recycling rates. Significantly, California's requirements differ from federal and other state recycling and packaging requirements in many respects.

SB 343: Beginning October 4, 2026, SB 343 will ban the recycling symbol and all statements regarding recyclability unless the product or packaging meets specific criteria showing that the product is accepted for recycling in most of California. If the product does not comply with Otherwise, the recycling claims will be considered deceptive and misleading, regardless of whether the recycling claim is "true." Litigation seeking to enjoin SB 343 from taking effect is currently pending, but is not clear if it will achieve its goal in time. Moreover, given the long lead times for manufacturers to develop their packaging an labeling, it is incumbent upon manufacturers to be aware of this law and take steps to implement it as soon as practicable.

SB 54: While SB 54 focuses on increasing recovery rates, including recycling rates, for packaging and food service ware, and not false advertising, the laws are interconnected. SB 54 requires that all non-reusable packaging must be recyclable or compostable by 2032. The definitions and conditions for what is considered recyclable under SB 54 are derived from SB 343. Thus, businesses making single-use packaging may find themselves struggling to meet this requirement because of the difficult criteria imposed under SB 343. Further, the SB 54 proposed rules are already creating confusion, are likely to increase compliance costs, and may cause unintended environmental setbacks.

What does SB 343 do?

Starting October 4, 2026, SB 343 will impose recycling labeling restrictions on newly manufactured products and packaging (items produced before this date are grandfathered and not affected). Styled as a false advertising law, PRC section 42355.51, subdivision (a) provides that "A person shall not offer for sale, sell, distribute, or import into the state any product or packaging for which a deceptive or misleading claim about the recyclability of the product of packaging is made."

Under the new rules, products/packaging are only considered "recyclable" in California if they:

(1) Are accepted for collection by recycling programs collectively serving at least 60% of the California population; and

(2) Are sorted into defined streams by large volume transfer/processing facilities that:

a. Process materials and collectively serve at least 60% of recycling programs statewide.

b. Send the defined streams to and reclaimed at a reclaiming facility consistent with the requirements of the Basel Convention.

PRC § 42355.51(d)(2).

Under this complex definition, "recyclable" will no longer mean an item can be recycled—it will mean the item is accepted and sorted for recycling at scale across the state. CalRecycle (part of CalEPA) will conduct periodic Material Characterization Studies to determine which materials meet these standards, updating the findings every five years (first update in 2027). Manufacturers are expected to scrutinize these reports and the data to determine if their products can carry recyclability claims. There are also alternative avenues to compliance, such as non-curbside collection programs, and certain exceptions.

There are several other requirements. For example, the law adds PFAS restrictions: plastic and fiber goods cannot be labeled recyclable if PFAS are either intentionally added or exceed 100 ppm measured as total organic fluorine. Further, manufacturers must keep records substantiating their recyclability claims. Additionally, the law incorporates the APR Design Guide for plastic packaging, which may mandate testing requirements.

Why is SB 343 problematic?

SB 343 changes the meaning of "recyclable" in ways consumers may not understand. Instead of meaning "this item can be recycled", the term will now mean "this item is being handled for recycling at a high level in many counties in California (and the recycling facilities are following the Basel Convention, which the US has not adopted)." Recyclable products that aren't widely processed could lose recycling messaging, possibly reducing recycling rates. For example, products that only have 40% acceptance coverage by recycling programs could no longer state "please recycle," which might prompt consumers to toss them in the trash.

The law also creates conflicts with other states' requirements. For example, many states mandate resin identification codes for rigid plastics (the numbers inside the chasing arrows symbol) to indicate material type, e.g., "1" for PET. But if a product doesn't meet California's recyclability definition, the arrows are banned and the number must appear in a plain triangle. This means packaging designs required in most states could be illegal in California, forcing manufacturers to create California-specific molds and labels.

California's goals could have been more cleanly and cheaply by requiring qualifying language or additional symbols, for example, the disclaimer "Not Recyclable Everywhere: Check Local Guidance," instead of banning common symbols outright.

What do Companies Need to do to Comply with SB 343?

As the requirements apply to products manufactured on or after October 4, 2026, businesses should move quickly to review their product lines and recycling claims, and analyze CalRecycle's reports and data to determine "recyclability." They should also keep records showing that their product qualifies as recyclable.

CalRecycle finds the data but does not enforce the law. Instead, enforcement is through local and state prosecutors and private litigants. Penalties include:

• Civil penalties under PRC section 42358: up to $500 for a first violation, escalating for repeat violations.
• Misdemeanor penalties under B&P Code section 17581: up to $2,500 fines and/or six months in jail.
• Enforcement under the Unfair Competition Law (UCL), enabling lawsuits from private plaintiffs.

What does SB 54 do?

SB 54 is a comprehensive Extended Producer Responsibility (EPR) bill designed to increase the recyclability rates of single-use plastic packaging and food ware accessories (i.e., plastic forks). Similar measures have been adopted in several other states. Put simply, EPR programs push businesses to reduce their long-term environmental impacts and increase recyclability of certain goods.

The law applies to (1) "single-use packaging" that is routinely recycled, disposed of, or discarded after its contents have been used or unpackaged, and (2) plastic "single-use food service ware", for example, trays, plates, bowls, utensils, wraps and bags. Under SB 54, producers must join or form Producer Responsibility Organizations (PROs) that manage industry-wide programs and meet statewide environmental targets. SB 54 will ratchet up over time, and by 2032, industries are meant to:

• Reduce use of covered materials by 25%;
• Ensure 65% recycling rates; and
• Ensure 100% recyclability (or compostability) for all single-use packaging and service ware.

What is SB 54's Timeline and Penalties?

PROs have already been formed under SB 54. Starting January 1, 2027, all businesses making covered products need to be under an approved PRO plan (or alternatively satisfy individualized requirements) to sell their products in California. Go forward from there, there will be a six-month grace period to join a PRO for new market entrants. The PROs' plans are intended to ensure that industries help California hit its environmental goals, both by changing manufacturing standards and by collecting fees for the state.

CalRecycle enforces SB 54, and determines what counts as "recyclable" for SB 54 purposes. Penalties can be up to $50,000 per violation. Importantly, recyclability under SB 54 does not guarantee compliance with SB 343's labeling rules, creating potential confusion for packaging and food service ware businesses.

Given the complex nature of SB 343 and 54, we will delve deeper to describe some of the more intricate details, requirements, and potential ramifications on businesses in follow-up blog posts.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.