A beginner's guide to extended producer responsibility laws

For years, the cost of recycling and disposing of packaging in the U.S. fell on local governments and taxpayers. A growing wave of state legislation is changing that by shifting financial responsibility back to the brands, manufacturers, and importers who put those products into the marketplace. Extended Producer Responsibility (EPR) has moved from a policy concept to a legal reality, and for producers, the window to get ahead of it is narrowing.

What is EPR?

EPR is a policy approach that makes producers responsible for the end-of-life management of their products and packaging. That means manufacturers and brands are required to help fund the collection, sorting, and recycling of those materials — essentially taking financial responsibility for what happens at the end of a product’s life.

For decades, a company could choose the cheapest possible packaging with no financial stake in how difficult that material would be to recycle. EPR is designed to close that loop.

Why do we need EPR?

Legislation is the more urgent driver, but consumer pressure is also part of the answer. Recent research found that 87% of Millennials and 86% of Gen Z think about the environmental impact of packaging before making a purchase, and more than half have changed a buying decision because of packaging concerns.

Additionally, seven U.S. states have enacted packaging EPR laws (Maine, Oregon, Colorado, California, Minnesota, Washington, and Maryland) with more expected to follow. If you meet a state’s revenue thresholds and material volume thresholds for materials sold into their state, you may already have obligations you don’t know about. Under EPR regulations, producers must register with designated producer responsibility organizations (PROs), track and report data in packaging and materials they use, and pay fees based on material type and recyclability of their products.

Who does EPR apply to?

EPR isn’t just a concern for large manufacturers. Under most laws, a “producer” can mean:

• Manufacturers who make and sell a product in a covered state
• Brand owners whose name appears on the product
• Importers who bring products into the U.S. and sell them
• Retailers selling products under their own private label

You are likely covered regardless of where your company is based.

What products are covered by EPR?

EPR programs target categories where end-of-life management is costly or environmentally harmful. While separate programs exist for electronics, paint, batteries, mattresses, pharmaceuticals, and pesticides in various states, the fastest-growing category is packaging.

States with these programs now require producers to fund recycling infrastructure for packaging, though what counts as “packaging” varies. Covered materials typically include:

• Product packaging, which in some states extends to labels, inks, and inserts
• Paper products
• Single-use food service ware
• Shipping packaging

How does EPR compliance work?

Most programs don’t require businesses to build their own recycling infrastructure. Instead, producers join a Producer Responsibility Organization (PRO), a collective body that pools fees from members and uses that funding to operate recycling and collection programs on their behalf.

Compliance generally follows three steps:

1. Register with the relevant state agency or PRO
2. Pay fees based on your reported volume (these are often higher for harder-to-recycle materials)
3. Meet targets as the PRO works toward state-mandated recycling goals

This fee structure, known as “ecomodulation,” makes EPR as much a design reform tool as a compliance requirement, creating a direct financial incentive to use more sustainable materials.

The state-by-state landscape

Unlike the EU, and similar to Canada, the U.S. has no federal EPR law. Rules differ by state, and if you sell nationally, you may need to track multiple overlapping programs at once.

What happens if you don’t comply with EPR?

Penalties vary by state but include fines, sales restrictions, and reputational risk. California carries fines of up to $50,000 per day per violation; Minnesota of up to $25,000 per day; Maryland up to $20,000. Major compliance deadlines have already begun in 2025 and 2026, and as programs mature, the risk of being flagged as non-compliant is growing.

Where to start

The patchwork of state laws is complex, and it’s evolving quickly. Companies that engage now will be far better positioned as these programs grow. EPR compliance is also an opportunity: the fee structures built into these laws create real financial incentives to move toward more sustainable materials and packaging design.

For businesses navigating this landscape, working with an experienced partner can make a significant difference. Our EPR Strategy service guides your team through an optimized compliance process designed to generate long-term strategic value, not just check a box — covering everything from compliance planning and packaging roadmaps to sales enablement and green claims support.

Read more: How to navigate EPR Laws, Gen Z demands, and the packaging revolution