Congressional Action Needed on Packaging Claims,
Supporting a Circular Economy
Packaging plays a vital role in the United States, ensuring the quality of consumer goods as they are manufactured, shipped, stored, and consumed, and by protecting the health and safety of U.S. citizens who consume, use, and handle those products. Businesses and consumers recognize that packaging has value and is an integral part of a sustainable supply chain.
The Challenge
Retailers, consumer packaged goods companies, and their suppliers are facing a patchwork of laws at the state level related to making recyclable, compostable, and reusable claims on packaging. This is leading to interstate commerce issues for businesses and promoting consumer confusion on how to dispose of packaging. This dynamic exists because the Federal Trade Commission (FTC), which regulates advertising claims under federal law, currently lacks the authority to preempt state laws regulating these claims. While the FTC has issued the “Green Guides”, these are merely just “guides” that are not independently enforceable, without the force and effect of law.
The Solution
The packaging value chain supports the introduction and passage of the Packaging and Claims Knowledge Act (PACK Act), which will establish a new framework for recyclable, compostable, and reusable claims for consumer product packaging under the FTC Act. Specifically, the PACK Act will create a uniform federal structure for when recyclable, compostable, and reusable claims can be made for packaging and will preempt state laws that attempt to regulate these types of claims in an inconsistent manner.
The PACK Act continues to vest the FTC with primary authority to regulate these claims, but adds a new section to the FTC Act to create a truly harmonized national framework to prohibit unfair and deceptive claims. The PACK Act also calls on the FTC to work with and consider input from the Environmental Protection Agency (EPA) administering the new scheme. The key elements of this framework include:
1. Mandatory third-party Certification Scheme for Consumer Product Packaging
The PACK Act establishes a mandatory third-party certification program, based on existing industry-recognized standards, for claims that consumer product packaging is recyclable, compostable, and reusable. This allows independent third parties to certify that product packaging meets industry standards and follows the FTC’s guidance to avoid deceptive claims.
2. Focus on Consumer Product Packaging
The certification programs will address how recyclable, compostable, and reusable claims can be made for different types, shapes, sizes, and colors of consumer product packaging. Non-consumer product packaging will not be subject to the mandatory third-party certification requirement.
3. State Preemption
States will be preempted from establishing, enforcing, or continuing in effect any legal requirement unless it is identical with any requirement imposed under the PACK Act. This approach will: (1) ensure that a truly national and consistent framework for recyclable, compostable, and reusable claims for packaging is achieved to eliminate interstate commerce challenges, (2) to the extent possible, eliminate consumer confusion and mistrust regarding packaging claims, and (3) help assure that packaging is handled correctly.
Ready to Support the PACK Act?
Please note: While we have been able to provide various drafts of the PACK Act for review in the past, the bill’s planned sponsor, in conjunction with House of Representatives Energy and Commerce staff and counsel, are currently drafting a final version for introduction. We do not currently have access to the version that will be introduced and are therefore unable to provide a confirmed draft at this time. Please use the PACK Act information above when reviewing potential support internally at your organization.
If you would like to support the introduction of this much-needed bill, or have questions, please reach out to Rob Keith, AMERIPEN Membership & Policy Director, via email to robk@ameripen.org.
Current Supporters of the PACK Act:
