U.S. states are adapting EPR laws to include e-commerce packaging, balancing regulations, exemptions for small businesses, and international best practices.
As states across the U.S. continue to implement extended producer responsibility (EPR) laws for packaging, the growing e-commerce sector presents new challenges and opportunities. California, Colorado, Minnesota, and Oregon have specifically incorporated e-commerce into their legislation to capture packaging waste from remote distributors.
Each state approaches e-commerce packaging differently. For example, Oregon defines two categories: one for the inner product packaging and another for the outer shipping packaging, assigning responsibility based on the source. This dual classification ensures that both the product manufacturers and the e-commerce platforms are accountable for their respective contributions to packaging waste.
In Colorado, officials emphasize similar provisions where the law requires compliance from both the producers of the inner and outer packaging. These states aim to establish clear regulations to prevent free-riders — companies that benefit from the system without contributing financially.
Regulating Small Businesses and Ensuring Compliance
States like Oregon and Colorado have introduced exemptions for small businesses to avoid overburdening minor e-commerce vendors. For instance, Oregon’s EPR program exempts companies with less than $5 million in annual revenue or those shipping under one metric ton of covered products. These exemptions aim to protect small online sellers, such as those operating on platforms like Etsy, from excessive regulatory pressure.
However, regulators also express concerns about non-compliance, particularly from international vendors or smaller entities that might slip through the system. This issue raises the challenge of free-riders who should pay into the system but avoid doing so, thereby increasing costs for compliant producers.
Drawing Inspiration from International Models
As these states refine their EPR programs, they draw lessons from international examples. Oregon, for instance, has studied Canadian systems, such as those in British Columbia, to align its definitions of 'producer' and 'covered product' with industry standards. Additionally, European countries like Austria and France provide models for waste prevention and lifecycle impact assessments.
California, meanwhile, integrates e-commerce packaging into its broader legislative efforts aimed at reducing single-use plastics and enhancing recycling efforts. The state’s Department of Resources Recycling and Recovery (CalRecycle) emphasizes that e-commerce, a significant segment of the economy, must play a key role in addressing packaging pollution.
Looking ahead, as more states work to incorporate e-commerce packaging into EPR frameworks, collaboration between regulators, producers, and industry leaders will be crucial. By adapting these regulations and ensuring compliance, states aim to build a more accountable and effective recycling system for the evolving packaging landscape.
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