In a landmark enforcement action targeting greenwashing, several plastic bag manufacturers have agreed to pay $1.7 million to settle allegations they falsely labeled their products as recyclable in California—a state with some of the strictest environmental marketing laws in the nation .
The settlement, announced by the California Department of Justice on October 17, 2025, marks a significant escalation in the state’s crackdown on deceptive environmental claims. But that’s not all: California is now suing three additional companies for similar violations, signaling a broader campaign to hold polluters accountable .
What Is the ‘Compact for Colleges’? Wait—No, This Is About Plastic Bags
Apologies—that headline mix-up won’t happen here. Let’s get back to the real story: plastic bags that were marketed as recyclable but, in reality, couldn’t be processed by most municipal recycling facilities.
Under California’s Environmental Marketing Claims Act, it’s illegal to label a product as recyclable unless it can actually be collected, separated, and reused through existing local programs. Many thin plastic shopping bags fail this test—they clog sorting machines, contaminate batches, and often end up in landfills or oceans .
Who’s Paying—and Who’s Being Sued?
While the identities of the settling companies weren’t fully disclosed in initial reports, the California Attorney General’s office confirmed they include major suppliers of single-use plastic bags to grocery and retail chains across the state.
Meanwhile, three other firms—named in a new lawsuit—are accused of continuing to slap “recyclable” labels on bags that don’t meet state standards. The state is seeking civil penalties, injunctive relief, and mandatory corrective advertising .
Why This Matters for Consumers
You’ve probably stood in a grocery aisle, holding a plastic bag labeled “Recyclable ♻️,” and felt a twinge of eco-guilt—or eco-relief. That’s exactly what these companies banked on.
“Greenwashing erodes public trust and undermines real recycling efforts,” said California Attorney General Rob Bonta in a press statement. “If your bag can’t actually be recycled in California, you don’t get to call it recyclable—period.”
The Bigger Picture: Plastic Waste in California
California generates over 3 million tons of plastic waste annually, with less than 10% effectively recycled . Thin plastic films and bags are among the worst offenders—not because consumers don’t try to recycle them, but because most curbside programs explicitly exclude them.
Many retailers offer in-store drop-off bins for plastic bags, but studies show fewer than 5% of consumers actually use them. The rest? They jam recycling machinery or blow into waterways.
What’s Next for Plastic Packaging?
This enforcement action could set a national precedent. Other states, including Washington and New York, are watching closely as California tests the limits of its green marketing laws.
Industry groups warn that overly strict labeling rules could confuse manufacturers, but environmental advocates argue it’s time for clarity—and consequences.
