- within Environment topic(s)
- with Senior Company Executives and HR
- with readers working within the Environment & Waste Management, Utilities and Construction & Engineering industries
California is seeing a rise in consumer class actions alleging "greenwashing," specifically "recyclable" labeling improperly applied with California Redemption Value (CRV) charges. Plaintiffs are targeting manufacturers and retailers and, as usual, leveraging California's wide-reaching trio of consumer protection statutes: the False Advertising Law (FAL), Business and Professions Code § 17500, the Unfair Competition Law (UCL), Business and Professions Code § 17200, and the Consumer Legal Remedies Act (CLRA), California Civil Code § 1750.
And businesses in this space should take note, because courts have shown a growing willingness to allow such claims to proceed.
Trends
Recent litigation in California focuses on:
- "Recyclable" claims that do not align with California's statutory definitions of recyclability
- Marketing that suggests sustainability or circularity without clear substantiation, and
- CRV charges applied to products not eligible for California's redemption program.
Typical cases allege class claims on behalf of California purchasers.
Emerging Themes
- Marketing Must Align with Statutory Definitions. California imposes specific criteria for labeling packaging as recyclable. Even industry-standard or nationally accepted terms may not satisfy California's requirements, creating a compliance trap for companies using uniform packaging across markets.
- Plaintiffs are Pairing Greenwashing with Pricing Claims. Cases demonstrate a trend of combining environmental marketing allegations with CRV-related pricing violations, broadening potential exposure.
- CRV Compliance is Becoming a Litigation Hotspot. Retailers and beverage sellers face increasing scrutiny regarding when CRV may be charged, whether certain containers are eligible, and whether point-of-sale systems apply CRV fees correctly. Plaintiffs are comparing retailers to their competitors to prove unfair and incorrect CRV charges.
- Broad Remedies Under the UCL. Plaintiffs frequently seek injunctions, labeling changes, and restitution.
Takeaways
Environmental Marketing
- Review all "recyclable," "sustainable," or "eco-friendly" statements for compliance with California-specific definitions.
- Maintain clear substantiation for any environmental marketing.
- Confirm packaging, website content, and point-of-sale materials use consistent, compliant language.
CRV Charges
- Audit point-of-sale systems to ensure CRV is applied only to eligible containers.
- Confirm consistent alignment with CalRecycle guidance.
- Confirm pricing is consistent with competitor and industry practices where relevant.
Next Steps
Companies selling consumer products in California should consider:
- Conducting an environmental marketing audit focused on recyclability claims.
- Performing a CRV compliance review across point-of-sale systems.
- Implementing periodic checks as CalRecycle guidance is updated.
- Training marketing and retail teams on California-specific requirements.
- Consulting counsel before launching new labeling, packaging, or pricing changes that reference environmental attributes or CRV charges.
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.
