A putative class action has been filed in the U.S. District Court for the District of Oregon challenging the constitutionality of Oregon’s Plastic Pollution and Recycling Modernization Act (RMA). In Lollicup USA, Inc. v. Oregon Department of Environmental Quality, plaintiff, a manufacturer and distributor of food serviceware, seeks to represent a class of producers subject to the RMA and requests a permanent injunction prohibiting enforcement of the statute against itself and the proposed class.
The RMA imposes extensive data collection and reporting obligations on producers of packaging sold into Oregon. Those data are used to calculate annual producer fees payable to the state’s designated Producer Responsibility Organization.
The Lollicup complaint largely mirrors the constitutional challenges asserted by the National Association of Wholesaler-Distributors (NAW) in a separate action pending before the same court, which is currently scheduled for trial in July 2026. As in the NAW case, Lollicup alleges that the RMA violates the Dormant Commerce Clause by imposing undue burdens on interstate commerce, assessing excessive fees that operate as an unlawful tariff, discriminating against interstate commerce, and regulating conduct beyond Oregon’s borders.
In addition, Lollicup asserts that the RMA violates the Due Process Clause by delegating significant regulatory authority to a private, self-interested entity without providing adequate procedural safeguards. The complaint further alleges that the proposed class has suffered irreparable harm and lacks an adequate remedy at law, warranting injunctive relief.
We will continue to monitor developments in both the Lollicup and NAW cases, as the outcome of these constitutional challenges could have significant implications for producers subject to Oregon’s extended producer responsibility program.
This client alert is prepared for the general information of our clients and friends. It should not be regarded as legal advice. If you have any questions regarding this update, or for more information about this topic, please contact any of the attorneys in our Environmental & Natural Resources Practice Group, or the attorney with whom you normally consult.
Filed under Environmental, Extended Producer Responsibility (EPR) Law, Food & Beverage, Manufacturing