Federal Lawsuit Filed Over Colorado EPR Law

The National Association of Wholesaler-Distributors has filed a federal lawsuit challenging Colorado’s Producer Responsibility Program for Statewide Recycling Act, the state’s extended producer responsibility (EPR) packaging law.

NAW v. Ryan argues that the Colorado law violates the U.S. Constitution by:

• Delegating government fee-setting authority to the Circular Action Alliance (CAA), a private organization, without adequate standards or oversight, and stripping businesses of any ability to challenge its decisions in court.
• Compelling businesses to join and financially support CAA as a condition of doing business in the state.
• Prohibiting businesses from disclosing government-mandated fees to their own customers.
• Allowing CAA to use mandatory member dues to promote its own political and policy positions, compelling businesses to fund speech they may not agree with.

This is the third lawsuit NAW has filed against a state EPR packaging law. Last year, the association sued Oregon after the state became the first in the nation to implement a packaging EPR law. The case went to trial at the end of January, and a ruling is expected as early as the end of August. In June, NAW joined a lawsuit brought by 17 states against California’s EPR law.

The Colorado EPR law differs from those in California and Oregon in that most B2B sales are excluded. Still, it could cover distributors in certain circumstances. Colorado producers have been required to participate in the program since July 1, 2025, and began paying mandatory fees in January 2026.

“While each state law has its own idiosyncratic differences, our overarching challenge remains the same,” said Eric Hoplin, NAW president and CEO. “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. NAW and its members support the goal of a circular economy, but Colorado’s EPR law does not get us closer to advancing that goal.”

In addition to the concerns over interstate commerce, NAW noted that the Colorado law prohibits businesses from telling their customers about the fees they’re required to pay. “Manufacturers and brands get to choose what materials go into their packaging, but distributors do not,” Chief Government Relations Officer Brian Wild said. “Yet Colorado’s law still pulls some distributors into its fee structure as ‘producers,’ and those costs flow through the supply chain to businesses and consumers beyond Colorado’s borders.”