NAW Sues Colorado Over Extended Producer Responsibility Packaging Law

The National Association of Wholesaler-Distributors (NAW) has filed a federal lawsuit against Colorado's Extended Producer Responsibility packaging law. The law, which went into effect on July 1, 2025, requires covered producers to join the Circular Action Alliance and pay fees to fund the state's recycling program.

The NAW complaint argues that the law is unconstitutional because it delegates government fee-setting authority to a private organization without adequate standards or oversight. The association also claims that the law compels businesses to join and fund the alliance, prohibits disclosure of government-mandated fees to customers, and forces companies to fund speech they may not support.

The Colorado Department of Public Health and Environment has designated Circular Action Alliance as a private producer responsibility organization, which includes founding members such as Amazon, Walmart, The Coca-Cola Company, Procter & Gamble, PepsiCo, Target, and others. NAW President and CEO Eric Hoplin stated that the association's challenge remains the same across various state laws: 'No state should limit interstate commerce, nor should they delegate power to set and collect fees to a third party outside the scope of public scrutiny.'