Texas Attorney General Ken Paxton has joined a multistate coalition and a national trade group in a lawsuit challenging a California packaging law, arguing the measure imposes costly regulations that reach beyond the state’s borders.
Paxton filed the action alongside other state attorneys general and the National Association of Wholesaler-Distributors, his office announced on June 23. The coalition is targeting California’s Plastic Pollution Prevention and Packaging Producer Responsibility Act, known as the Plastics Act.
According to the announcement, the Plastics Act imposes extensive requirements on manufacturers, distributors, and companies that package or ship products using plastic containers or other packaging materials that contain plastic. The law’s reach extends to aluminum, cardboard, paper, glass, and wood packaging as well.
The coalition contends that the statute conditions access to California’s market on changes to packaging design, production, and waste disposal, while imposing fees the lawsuit describes as discriminatory toward out-of-state businesses. Paxton’s office said the requirements are expected to raise prices on everyday goods.
“I am challenging California’s Plastics Act to protect businesses from unnecessary regulations and Texans from higher costs on the products they use every day,” Paxton said. “Texas has always been a place where businesses can thrive, and I will ensure it remains that way. I will not allow California lawmakers to harm Texas businesses.”
Eric Hoplin, president and CEO of the National Association of Wholesaler-Distributors, said the law overreaches.
“California is not entitled to pronounce nationwide policies,” Hoplin said. “Because the Act extends California’s regulatory reach far beyond its borders and brings within its sweep conduct wholly unconnected to California, the Act violates principles of federalism, the horizontal separation of powers, and due process.”
The lawsuit also raises concerns about the Act’s delegation of regulatory and enforcement authority to the Circular Action Alliance, which the announcement describes as an “unelected, privately controlled organization operating with minimal state oversight.” According to the filing, the Alliance is empowered to collect up to $500 million annually from businesses seeking access to California’s market, with limited transparency or accountability.
The coalition is seeking a declaratory judgment that the Plastics Act violates both the United States Constitution and the California Constitution, and an order halting its enforcement.
