California's Product & Packaging Recyclability Label Legislation Takes Effect Oct. 4

New restrictions require manufacturers, retailers, and distributors to evaluate packaging recyclability and labeling claims against new criteria 

Manufacturers, brand owners, retailers, and other industry stakeholders have six months to comply with California's Senate Bill 343 (SB 343), which prohibits the use of the "chasing arrows" recycling symbol, any other recyclability indicator, or any statement directing consumers to recycle products or packaging sold in California unless specific recyclability criteria are met. Companies that have not yet evaluated their packaging and labeling practices face a narrow compliance window and significant exposure, including civil and criminal penalties, private litigation risk, and enforcement by local prosecutors and the California attorney general.

The statute carries broad implications across multiple industries, including consumer products, food and beverage, restaurants and grocers, retailers and distributors, and agribusiness. It poses particular challenges for businesses that rely on plastic packaging materials, which face additional design and chemical composition requirements under the law. Products and packaging manufactured on or after Oct. 4, 2026, must comply with the new labeling restrictions. Manufacturers, brand owners, and producers are advised to audit their labeling practices and supply chains now.

What the law prohibits and requires

SB 343, enacted in 2021, amended several provisions of California law governing environmental marketing claims. Under SB 343, a recyclability claim is considered deceptive or misleading unless the material type and form meets all three of the following criteria:

• Collected by recycling programs serving at least 60% of California's population;
• Sorted into defined streams by large-volume transfer or processing facilities serving at least 60% of recycling programs statewide; and
• Sent to a reclaimer consistent with Basel Convention requirements.

For plastic packaging, additional design requirements apply — packaging must not contain components, inks, adhesives, or labels that impede recyclability per the APR Design Guide, and must not contain intentionally added PFAS at or above 100 parts per million. Alternative pathways exist for materials with a demonstrated recycling rate of at least 75% and for noncurbside collection programs.

Certain products are exempt, including containers under California's Beverage Container Recycling and Litter Reduction Act. The law also requires manufacturers and distributors to maintain written records substantiating recyclability claims.

What CalRecycle's data means for your labels

Many materials that manufacturers have long labeled as recyclable do not meet SB 343's 60% collection and sorting thresholds, and CalRecycle's published data now makes that discrepancy visible and actionable. On April 4, 2025, CalRecycle published the SB 343 Material Characterization Study Final Findings — 2023/2024, identifying which materials meet the law's thresholds across material types and forms. Manufacturers can use this data when assessing whether their products qualify for recyclability labeling.

On Aug. 8, 2025, CalRecycle published an update to the resource ("Table 2" in their "Final Findings" report) identifying specific material types and forms collected and sorted by facilities statewide. CalRecycle does not make product-by-product determinations; that assessment remains the responsibility of manufacturers and brand owners. The study will be updated in 2027 and every five years thereafter, with each publication triggering an additional 18-month compliance window.

Relationship to SB 54 and potential conflicts

SB 343 does not operate in isolation. California's SB 54 imposes separate "extended producer responsibility" (EPR) obligations on plastic packaging, and future CalRecycle studies are expected to align with SB 54's covered material categories. Companies should also be aware that removing recyclability claims to achieve SB 343 compliance may create tension with other states' laws that affirmatively require recycling instructions on certain products or packaging. A coordinated approach is essential.

Enforcement and penalties

SB 343 violations carry penalties under multiple provisions: misdemeanor criminal liability, civil penalties per non-compliant product or package, and exposure under California's Unfair Competition Law, which may be invoked by public prosecutors or private plaintiffs. Because each non-compliant product may constitute a separate violation, aggregate exposure for high-volume manufacturers could be substantial.

Constitutional challenge

On March 17, a coalition of trade associations filed suit seeking a declaration that SB 343 is unconstitutional and an injunction blocking enforcement. The outcome remains uncertain, and companies not party to the litigation should not assume the lawsuit impacts their compliance obligations.

Compliance recommendations

Manufacturers, brand owners, and producers can consider the following steps to prepare for SB 343:

• Identify Affected Packaging and Labels: Conduct an audit of all products and packaging sold in California to identify uses of chasing arrows, recyclability statements, or other recyclability indicators, and assess each against CalRecycle's final findings study and SB 343's criteria.
• Evaluate Supply Chain and Vendor Agreements: Review contracts with suppliers, co-packers, and retailers to determine how responsibility for packaging and labeling compliance is allocated, and update agreements accordingly.
• Assess Material Replacement and Design Simplification: Evaluate opportunities to transition to mono-material plastics (e.g., polyethylene) and remove inks, additives, and pigments that may hinder recyclability or contaminate recycling streams. Engage supply chain partners early to implement these changes consistently across your packaging portfolio.
• Stay Informed: Monitor developments in the SB 343 litigation, updates to CalRecycle's findings, and implementing regulations under SB 54, as new material characterization studies beginning in 2027 will reset compliance obligations on a five-year cycle.