Two Lawsuits. One Big Question: What Happens Next for California’s Packaging Future?

California’s landmark packaging law, SB 54, has entered a new chapter—and businesses that manufacture, distribute, or use packaging should be paying attention.

Two separate lawsuits have now been filed challenging California’s implementation of the state’s Extended Producer Responsibility (EPR) program. Interestingly, they approach the law from opposite directions.

One lawsuit, filed by environmental organizations, argues the finalized regulations do not go far enough to fulfill SB 54’s original promise of reducing plastic packaging and improving environmental outcomes.

The other, filed by a coalition of 17 states along with industry organizations, argues California has exceeded its authority by effectively influencing packaging requirements beyond state borders and requiring producers to participate in the state’s Producer Responsibility Organization.

Although the legal arguments differ, both cases raise important questions about how California’s packaging policies will be implemented and whether those policies could influence packaging decisions across the United States.

Why This Matters

SB 54 is more than a California law.

Because California represents one of the world’s largest consumer markets, many companies design packaging to meet California’s requirements rather than maintain different packaging systems for different states. As a result, decisions made in Sacramento often influence packaging innovation well beyond California’s borders.

The outcome of these lawsuits could affect:

• Packaging design and material selection
• Producer responsibility obligations
• Product labeling
• Compliance costs
• Investment in composting and other end-of-life infrastructure

For foodservice operators, retailers, distributors, manufacturers, and packaging suppliers, these are developments worth following closely.

What Businesses Can Do Today

While the courts consider these challenges, businesses don’t need to stand still. They can:

• Stay informed as the litigation and regulatory process continue.
• Evaluate packaging strategies in light of California’s evolving requirements.
• Support investments in certified compostable packaging where appropriate.
• Advocate for expanded composting infrastructure to ensure certified compostable products have access to their intended end-of-life pathway.
• Participate in future public comment opportunities and engage constructively with policymakers.

​The Better Earth Perspective​
Regardless of how these lawsuits are resolved, one reality remains unchanged: reducing food waste, diverting organic materials from landfills, and expanding access to composting infrastructure remain important goals for California communities.

Certified compostable packaging can play an important role when paired with robust compost collection systems and facilities capable of processing food scraps and compostable foodservice packaging together.

The legal process will help clarify how California moves forward. In the meantime, businesses that stay informed and continue planning thoughtfully will be best positioned for whatever comes next.

Disclosure: Better Earth manufactures certified compostable foodservice packaging. This article is intended to provide general information about ongoing legal developments affecting California’s packaging landscape and should not be considered legal advice. Readers should consult qualified legal counsel regarding compliance with applicable laws and regulations.