California has filed a lawsuit against three major plastic bag producers and reached settlements with four others following a multi-year investigation into false claims that their bags were recyclable, state officials announced Friday.
Companies Named in the Lawsuit
Attorney General Rob Bonta said the state is suing Novolex Holdings LLC, Inteplast Group Corp, and Mettler Packaging LLC for allegedly violating California’s Environmental Marketing Claims Act, False Advertising Law, and Unfair Competition Law.
Four other companies — Revolution Sustainable Solutions, Metro Poly Corp, PreZero US Packaging, and Advance Polybag, Inc. — reached a settlement agreement with the state to resolve similar allegations.
“The consequences of these violations are severe: billions of plastic carryout bags end up in landfills, incinerators, and the environment instead of being recycled as the bags proclaim,” Bonta said in a statement. “Our legal actions today make it clear: no corporation is above the law.”
Investigation and Findings
The lawsuits stem from a three-year investigation launched in 2022, when Bonta’s office demanded that bag manufacturers substantiate their claims that products labeled “recyclable” could actually be processed in California’s recycling systems.
The California Statewide Commission on Recycling Markets and Curbside Recycling had urged the Attorney General and CalRecycle to intervene, citing widespread mislabeling that misled consumers and undermined the state’s anti-pollution goals.
The Plastic Bag Loophole
California’s 2017 ban on single-use plastic shopping bags was intended to reduce plastic waste. However, a loophole allowed retailers to sell thicker “reusable” plastic bags for a minimum of 10 cents each — so long as the bags were recyclable under state guidelines.
Environmental advocates say manufacturers exploited that loophole by misrepresenting the recyclability of their thicker plastic bags, which still end up in landfills.
Settlement Terms
Under the settlement, the four companies agreed to halt plastic bag sales in California and pay $1.8 million in penalties.
Officials say the enforcement action is part of a broader state push to hold corporations accountable for greenwashing and to protect Californians from deceptive environmental marketing.
“If a product can’t be recycled in California, it shouldn’t be labeled that way,” Bonta said. “Consumers deserve honesty, and our planet demands responsibility.”
