California Cracks Down on Plastic Bag Manufacturers for Misleading Recycling Claims

California has filed a lawsuit against three major plastic bag manufacturers and reached settlements with four others following an investigation into alleged false claims about recyclability, state officials announced Friday.

Attorney General Rob Bonta’s office filed suit against Novolex Holdings LLC, Inteplast Group Corp, and Mettler Packaging LLC for allegedly violating California’s Environmental Marketing Claims Act, False Advertising Law, and Unfair Competition Law by making misleading claims about their products’ recyclability.

“The consequences of these violations are severe: Billions of plastic carryout bags end up in landfills, incinerators, and the environment instead of being recycled as the bags proclaim,” Bonta said in a statement. “Our legal actions today make it clear: No corporation is above the law.”

Simultaneous with the lawsuit, Bonta announced settlements with four other plastic bag producers: Revolution Sustainable Solutions LLC, Metro Poly Corp, PreZero US Packaging LLC, and Advance Polybag Inc. These companies agreed to stop selling plastic bags in California entirely and will collectively pay $1.8 million to the state to resolve their alleged violations of the same laws.

The legal action comes nearly three years after Bonta launched an investigation into the industry, requesting that manufacturers substantiate their claims about the recyclability of their products. The investigation was prompted by concerns from the California Statewide Commission on Recycling Markets and Curbside Recycling, which had asked state officials to address what they characterized as illegal labeling practices undermining California’s plastic pollution reduction efforts.

Environmental advocates have long criticized what they view as a significant loophole in California’s 2017 ban on single-use shopping bags. While the law prohibited traditional thin plastic bags, it permitted retailers to sell thicker “reusable” plastic bags for a minimum of 10 cents each, provided the bags could be recycled in California. Critics contend that this provision has allowed plastic to maintain its dominance in California’s retail sector despite the spirit of the original ban.

The recyclability claims at the center of these legal actions have significant implications for California’s waste management infrastructure. When consumers place non-recyclable bags in recycling bins based on misleading labels, it can contaminate recycling streams and increase processing costs. Many of these thicker plastic bags ultimately end up in landfills despite their “recyclable” labels, according to state officials.

California has positioned itself as a national leader in addressing plastic pollution through legislation and enforcement actions. In 2022, Governor Gavin Newsom signed a law requiring all packaging in the state to be recyclable or compostable by 2032, establishing one of the most comprehensive plastic reduction policies in the country.

Plastic industry representatives have historically defended their recyclability claims, arguing that the products are technically recyclable even if recycling infrastructure is insufficient to process them. However, California law is specific about when recyclability claims can be made, requiring that recycling facilities actually be available to a substantial majority of consumers in the areas where products are sold.

The lawsuit and settlements represent part of a broader trend of increased scrutiny of environmental marketing claims. The Federal Trade Commission has also been reviewing its “Green Guides,” which provide standards for environmental marketing claims nationwide, amid growing concerns about greenwashing across industries.

For California consumers, the legal actions may eventually lead to changes in the types of bags available at checkout counters across the state. The four companies that settled have agreed to exit California’s plastic bag market entirely rather than modify their products or marketing claims.

State environmental officials noted that truly reusable options like cotton or other durable fabric bags remain available to consumers and represent the most environmentally sound choice for shoppers looking to reduce their plastic footprint.