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What are Consequences for Failure to Comply with EPR Deadlines?

Writer: Catherine W. JohnsonCatherine W. Johnson

Updated: 2 hours ago

March includes a major deadline for companies obligated under Extended Producer Responsibility (EPR) packaging programs (which in some states include paper and/or food service ware). By March 31, 2025, Oregon’s program requires that “producers” under the law must register with and provide packaging data to Circular Action Alliance (CAA), the single nonprofit organization approved in Oregon to administer compliance on behalf of producers. [1] Companies that fail to do so may be subject to back fees and penalties.


The Oregon program covers packaging, paper, writing paper, and certain food service ware. A company is likely to be a producer in Oregon if they are the brand owner of a product that is sold or distributed with packaging either to a consumer or a business in Oregon, although non-brand entities in the supply chain may be obligated in some instances. Moreover, even for a single product, different parties in the supply chain may be considered the producer for different packaging associated with the product.


Certain exemptions may apply based on a producer's revenue, tonnage of packaging used, or based on the type of packaging. Moreover, a producer is not required to be a member of a PRO if another person has registered with the PRO as the producer responsible for the covered products they sell, offer for sale, or distribute in or into Oregon.

 

To assist companies evaluate whether they are a producer, CAA has developed extensive written guidance. Companies will need to apply the guidance to their own fact scenarios, assess whether they qualify for a blanket exemption or whether some of their packaging is exempt, and evaluate which packaging in the supply chain they are responsible for as a producer.

 

In a March 5 blog post on their website, CAA detailed the potential risks for producers that choose not to register and report their data by March 31, 2025:

 

1.     Transparency and Reputation – CAA is required by Oregon’s law to publish a list of compliant and noncompliant producers, which is available on CAA's website. Compliant companies will face a strong incentive to verify their competitors are registered to ensure that all producers pay their fair share.


2.     Financial Consequences – Producers that late report their data or provide an inaccurate report will be required to retroactively pay all outstanding fees for the period of non-compliance, along with applicable late charges or liquidated damages.


3.     Escalating Enforcement – If CAA is unable to quickly resolve an issue of noncompliance, the noncompliance may be referred to Oregon’s Department of Environmental Quality (the implementing agency), with potential fines of up to $25,000 per day. In the most severe cases, the Oregon Department of Justice has the authority to halt a company’s sales in Oregon.

 

Registration with CAA involves several steps described on CAA’s website, including submission of a registration form and signing a binding contract with CAA.

 

Producers are not prohibited from registering and reporting to CAA after the March 31, 2025, deadline, but those that defer registration and reporting, or do not register or report at all, may be subject to various risks. To mitigate these risks, businesses should take steps to evaluate their producer status and register with CAA. Although late in the game at this point, software options are available that may significantly reduce the time required to sort and report data. Please contact EPR Group for more information.


[1] Colorado’s program required registration by October 1, 2024. The last version of California’s proposed regulations called for registration by July 1, 2025; however, Governor Newsom has directed CalRecycle to go back to the drawing board, asserting that the regulations were too burdensome for businesses as drafted.

 



 
 
 

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