Responsible green marketing: Regulatory shifts reshaping environmental packaging claims

Introduction: A paradigm shift in environmental marketing

Greenwashing, the practice of overstating or misrepresenting environmental benefits, has been a key focus of corporate marketing scrutiny for several years. Regulators, attorney generals, plaintiffs’ attorneys, investors, and consumers have increasingly challenged the substantiation of environmental marketing claims, citing concerns that certain claims may mislead consumers.

Two US developments signal a fundamental shift from principles-based guidance to enforceable mandates: (1) the arrival of enforcement deadlines under California’s SB 343 (“Truth in Recycling” law) and (2) congressional progress on the proposed federal Packaging and Advertising Claims for Knowledge (PACK) Act.

Together, they pose new compliance challenges and heighten litigation risk, warranting proactive, strategic steps from industry..

SB 343: From aspirational to auditable

Enacted in 2021, California’s SB 343 established criteria governing the use of recyclability claims on products and packaging. Many products display the “chasing arrows” symbol, and some state laws require it. Some consumers may understand the symbol to mean that a product or packaging is recyclable even where local recycling infrastructure does not process the material. SB 343 aims to close that gap by strictly defining what qualifies as recyclable, prohibiting recyclability claims that do not satisfy that definition, and imposing new recordkeeping and disclosure obligations.

Under SB 343, a product may be labeled or marketed as recyclable only if it meets the “double 60” threshold – accepted by recycling programs serving at least 60 percent of California residents and processed by facilities that recycle at least 60 percent of that material type. Beginning in October 2026, the chasing arrows symbol and similar graphics cannot be used unless these criteria are met.

Further, since January 2024, companies have been required to maintain written documentation substantiating recyclability claims and to make that documentation available to any member of the public upon request. Violations can result in civil penalties and consumer protection actions.

In sum, SB 343 transforms recyclability claims from aspirational marketing into auditable legal representations, calling for cross-functional collaboration among marketing, legal, sustainability, and supply chain teams.

The PACK Act: A measure toward federal harmonization

Introduced in late 2025, the PACK Act proposes voluntary national standards for environmental packaging claims. Its stated purpose is to reduce consumer confusion and create consistency across jurisdictions. While not mandatory, the Act signals a federal move toward harmonization and could influence future Federal Trade Commission (FTC) guidance. By encouraging alignment between marketing claims and actual recycling infrastructure, the PACK Act offers companies an opportunity to anticipate regulatory trends and demonstrate good-faith compliance. Early adoption could position businesses as leaders in sustainability and mitigate litigation risk.

Implications for industry

The impact of these developments is broad. Consumer goods and retail companies face heightened exposure because packaging claims are often central to brand identity. Manufacturers and packaging suppliers are increasingly expected to ensure their products meet recyclability criteria and provide substantiation to downstream customers. E-commerce platforms that replicate product claims in digital listings also face compliance risks. Sustainability messaging – such as “eco-friendly,” “green,” or “recyclable” – must be verified under SB 343, and similar requirements are emerging globally. Multinational corporations face additional challenges to harmonize compliance across jurisdictions, including the European Union’s Green Claims Directive and Canada’s plastics regulations.

Global convergence

The trend toward substantiated environmental claims is accelerating worldwide. The EU’s Green Claims Directive, expected to take effect in 2026, will require companies to provide verifiable evidence for environmental claims, supported by independent certification. Canada’s plastics regulations and similar initiatives in Asia–Pacific markets reflect a global movement of increased transparency and accountability. Multinational companies should consider a coordinated compliance strategy that harmonizes marketing practices and anticipates emerging standards across jurisdictions.

Enforcement and litigation trends

Recent enforcement trends underscore the urgency of compliance. CalRecycle guidance confirms that products labeled “recyclable” must meet the “double 60” threshold, and companies failing to comply could face consumer inquiries and reputational fallout. Litigation risk is also increasing. Recent class actions have targeted brands for sustainability claims without adequate substantiation, resulting in multimillion-dollar settlements and negative press coverage. Many recent consumer suits challenge the use of chasing arrows, and some have cited SB 343’s double 60 threshold, despite the law’s prohibition still being several months away from taking effect. These cases highlight the importance of proactive compliance and robust documentation.

Compliance roadmap

To prepare for SB 343, the PACK Act, and global mandates, companies are encouraged to take the following steps:

• Reevaluate the substantiation for their environmental marketing claims and consider how recyclability statements are supported (i.e., by evidence of acceptance and processing at the double 60 threshold). Recordkeeping systems should enable claim-level substantiation and rapid response to documentation demands by regulators, litigants, and even members of the public.
  
  
• Review packaging design and labeling ahead of time to meet SB 343’s 2026 enforcement timeline. Businesses operating nationally should evaluate alignment with PACK Act principles to standardize internal controls and reduce cross-jurisdictional friction.
  
  
• Monitor ongoing greenwashing litigation trends across key jurisdictions, tracking environmental and sustainability claims at risk within their industries to anticipate and mitigate emerging threats.
  
  
• For multinationals: Map environmental marketing claims and proof points against the EU Green Claims Directive and comparable regimes in Canada and Asia–Pacific to undergird a unified governance framework.
  
  
• Ensure training for marketing, legal, sustainability, and supply chain teams reinforces the shift from aspirational messaging to legally binding representations, with clear escalation procedures for high-risk claims.

What’s next

The FTC last updated the Green Guides in 2012 and has repeatedly postponed further updates that were originally expected in 2022. Many observers have expected the next iteration to incorporate stricter standards and enforcement mechanisms in response to state and federal developments. But, the timeline and substance of updated Green Guides is uncertain under the second Trump Administration. Meanwhile, Oregon’s unsuccessful effort to pass an anti-greenwashing law in 2025 suggests that additional states may follow California’s lead, creating a patchwork of requirements that may further elevate the need for harmonization.

Companies that act now – by embedding compliance into governance frameworks and aligning marketing with material realities – may not only mitigate risk but also position themselves as leaders in the sustainability economy.

For more information, please contact the authors.