A coalition of farmers, food producers, restaurants, packaging manufacturers, and grocers filed a federal lawsuit on Mar. 17 challenging California’s SB 343 (2021), a law that restricts the use of recycling labels on product packaging. The group argues that the law violates free speech rights and will negatively impact recycling efforts in the state.
The plaintiffs say the law could confuse consumers about what can be recycled and increase costs for families. They are seeking a preliminary injunction to block enforcement of SB 343, which is set to take effect on October 4, 2026 but is already prompting businesses to change their labels.
According to the complaint filed in the U.S. District Court for the Southern District of California, SB 343 prohibits companies from labeling packaging as recyclable unless it meets strict criteria set by state regulators. The coalition claims these standards do not reflect real-world recycling capabilities or local program differences and are difficult for businesses to apply because they depend on decisions made by various recycling operators outside producers’ control.
Dairy Institute of California Executive Director Katie Davey said, “California is about to make it harder, not easier, for families to go green. SB 343 forces dairy product manufacturers to remove vital recycling guidance from the very cartons Californians rely on every day. This law ignores the reality of our recycling infrastructure and unconstitutionally restricts our right to provide transparent recycling instructions to consumers. We are seeking to stop this policy before it leads to more waste and disrupts our ability to deliver milk to California families and schools.”
The lawsuit also alleges that removing clear recycling guidance from packaging will reduce consumer participation in recycling programs and discourage investment in new recyclable materials. Plaintiffs argue that companies now face penalties for providing non-compliant guidance and are incurring higher costs as they alter or remove labels.
Organizations involved in the lawsuit include the California Restaurant Association, Dairy Institute of California, California Grocers Association, Pet Food Institute, SNAC International, Californians for Affordable Packaging, California League of Food Producers, Flexible Packaging Association, Print Creative Alliance, Grower-Shipper Association of Central California, several commodity commissions such as those representing table grapes and walnuts, American Forest & Paper Association and Western Growers Association.



