The first major EPR reporting deadlines have come and gone, but for many organizations the real challenge is only just beginning. As more states introduce packaging legislation and reporting requirements become increasingly complex, accurate data has never been more important.
In this article, Gillian Garside-Wight, Director of Consulting here at Aura Global, explores the state of EPR compliance across the U.S., why California is emerging as the model others may follow, and what retailers and brands need to do now to stay ahead of rising costs, regulatory scrutiny and future reporting obligations.
In most states with Extended Producer Responsibility (EPR) legislation in place, such as California, Oregon and Colorado, May 31st, 2026, was a very big day. Specifically, the latest reporting deadline for producers (and in some places, the first).
Although it will take a while to collate all the reports, it would be no surprise to find out that many submissions included proxy data and educated guesswork rather than 100% accurate and compliant information. Every conversation we have had with retailers and brands across the U.S. in recent months suggests that many are still far from perfect in how they track, record and report packaging sustainability.
In many ways, even years on from when it was first announced, EPR remains a shock to the system. A lot of companies know they are not compliant and are still just waiting and watching; accepting that they will have to pay fines if they are caught.
That attitude is not great but is also not really a surprise. EPR is a huge step for the U.S., which has never faced a reporting requirement of this scale before. Those with operations in Europe may have had slightly more warning of the potential scope of EPR, but that’s it.
Why California is one to look at
As part of that watching and waiting, many businesses across the U.S. are watching California. Its SB 54 (Plastic Pollution Prevention and Packaging Producer Responsibility Act) will be one of the most stringent regulations globally which includes EPR and is only going to get tighter as it evolves.
Significant percentages of food service ware and single-use plastics will have to be recyclable or compostable, and year on year those numbers are going to go up. Non-compliance will lead to significant penalties, including daily charges of up to $50,000 per violation.
It’s not just retailers and brands that are looking at California, either – other states are looking at those demanding requirements and considering them for their own EPR bills.
They, and the wider world, are watching California to see how effective EPR can be. In 12 months’ time, that picture will be a lot clearer, and a major success in the Golden State encouraging recycling and sustainability in packaging will likely lead to its form of EPR being replicated elsewhere.
And don’t forget, it applies to (almost) all packaged products sold in California. Do you have e-commerce customers in Pasadena, or a single store in Sacramento even though your business is based in Arizona? California’s EPR will still apply to you.
Doing the right thing
Some organizations are in a better place than others, of course. They pre-empted the arrival of EPR and were proactively leading in data capture for their packaging.
Even now, that approach is bearing fruit for retailers and brands: currently, seven states have EPR legislation in effect and another nine have proposals either in discussion or going through the legislature. In the next five years, it would be completely unsurprising to see 20 states with EPR in place.
Businesses that sell in currently non-EPR states may want to have that same level of forward thinking. If they start work on developing accurate data and reporting now, they’ll be in a much better place when the legislation arrives.
Why retail is the sector to watch
In my experience, brands tend to have more access to data because they buy packaging directly and have access to its specifications, and so may be better placed to handle EPR reporting.
Retailers, on the other hand, are in a slightly more awkward position. They often have huge private label ranges, with all the packaging that entails, but if they bought the product and packaging as one unit then they may not have the level of data they need.
But even more important is the fact that so many retailers, even now, have zero idea that EPR is going to affect them at all.
Grocery chains and big box stores selling private label food and drinks tend to be well aware of EPR because food packaging is obvious and at front of mind every day, but they’re only one part of the overall retail picture. ‘Private label’ is a lot more than just a bottle of soda or a microwaveable lasagna.
Hardware stores. Apparel and fashion. Cosmetics. Toys. Sports merchandise. All these sectors (and more) have products that are ‘private label’ to the retailers that sell them. These retailers have high volumes of packaging for those products but will likely have no idea of the huge bill they are about to be blindsided by.
The states are going to be looking for areas to clamp down on to raise revenue through their EPR legislation and these unaware retailers are a tempting target.
There’s the primary packaging, the secondary packaging (the box that the boxes/bottle/bags of products came in) and the transit packaging (pallets, corner posts, slip sheets, stretch wrap, pallet labels). It all falls under EPR, and most non-food retailers simply have no idea of the tsunami heading their way.
What happens next?
It may be that EPR will only really be part of the fabric of business after those first few multi-million-dollar fines have hit the headlines, which will force retailers and brands to take it more seriously.
Some states also have restrictions already in place for ‘substances of concern’, such as Expanded Polystyrene (EPS) food containers, EPS void fill/peanuts, phthatates/orthophthalates and bisphenols. Expect to see more of that.
More than anything, however, is the need for accurate data. Without that, fees and fines are going to go up and will negatively impact the bottom line. Every brand – and every retailer, in particular – must have a plan in place to ensure it’s on the right side of this unprecedented packaging data requirement.
At Aura Global we partner with leading global retailers and brands to help them measure and manage packaging effectively through expert EPR Consultancy, and our award-winning packaging sustainability data management platform, e-halo.
Header Photo by Drei Kubik on Unsplash
Article Photo by Jonathan Chng on Unsplash
