If you've been in any CPG founder community lately, you've probably heard "EPR" thrown around — and if you're not sure what it means for your brand yet, you're not alone. Extended Producer Responsibility laws are live, expanding, and starting to come with real deadlines and fees. Here's what you actually need to know.
01 ·You're Probably Already on the Hook
EPR laws place financial and operational responsibility for packaging waste on the companies that put packaging into the market — that means brand owners, manufacturers, and distributors. If you sell products in California, Colorado, Oregon, Maine, Maryland, Minnesota, or Washington, there's a good chance you're considered a "covered producer" under state law.
What that means in practice: You may need to register with the Circular Action Alliance (CAA) — the central Producer Responsibility Organization handling compliance for most active states — report how much packaging material you sell into each state, and pay fees based on that volume.
Oregon was the first state to collect fees (July 2025). Six states now have reporting deadlines landing on May 31, 2026. If you haven't checked your compliance status yet, now is the time.
Quick gut check: Do you sell packaged goods in any of the seven states listed above? If yes, start by visiting the CAA's registration portal.
02 ·Your Packaging Materials Will Affect How Much You Pay
EPR programs aren't one-size-fits-all — they're designed to incentivize better packaging through a concept called eco-modulation. That means your fees go up or down based on what your packaging is made of and how recyclable it actually is.
Packaging that's harder to recycle (think multi-material laminates, non-standard plastics, or materials without established recycling streams) will cost more. Packaging made from recyclable, compostable, or recycled-content materials will generally cost less.
This has a direct downstream effect on how CPG brands should be thinking about sourcing:
- Single-material formats (mono-material pouches, corrugated boxes, paper mailers) will be more favorable under eco-modulation.
- FSC-certified and recycled-content materials signal compliance readiness to buyers and retailers.
- Packaging audits are becoming a standard part of the compliance process — if you don't know what your current mix looks like by material type, now's the time to find out.
California's SB 54 goes furthest: by 2032, all single-use plastic packaging must be reduced 25% from 2023 baseline levels, and 65% must be recycled. The clock is ticking.
03 ·The Patchwork Is Only Going to Get More Complex
Right now, seven states have enacted packaging EPR laws — but that number is growing. New Jersey, Rhode Island, and New York all have active legislative discussions underway. Each state has its own thresholds, definitions, reporting templates, and fee structures.
That's a compliance headache if you're trying to manage it state by state. A few things to keep in mind:
- Small brands aren't automatically exempt. Most states have revenue and volume thresholds, but they vary — what exempts you in one state may not exempt you in another.
- Retailers are paying attention. As EPR programs mature, expect retailers and major buyers to start asking suppliers about their packaging recyclability and compliance posture.
- Your packaging partner matters. Working with suppliers who understand material certifications (FSC, PCR content, recyclability ratings) will make your reporting and compliance significantly easier.
What This Means for How You Source Packaging
EPR is reshaping what "good packaging" means for CPG brands — not just aesthetically or functionally, but financially and legally. The brands that will navigate this best are the ones that treat packaging as a strategic input, not an afterthought.
At The Carton, we curate manufacturers who can speak to material certifications, recycled content, and recyclability — so when EPR deadlines hit, you have sourcing partners already aligned with where the market is heading.