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TheCorporateCounsel

TheCorporateCounsel.net

A basis for research and practical guidance focusing on federal securities laws, compliance & corporate governance.

DealLawyers

DealLawyers.com

An educational service that provides practical guidance on legal issues involving public and private mergers & acquisitions, joint ventures, private equity – and much more.

CompensationStandards

CompensationStandards.com

The “one stop” resource for information about responsible executive compensation practices & disclosure.

Section16.net

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Widely recognized as the premier online research platform providing practical guidance on issues involving Section 16 of the Securities Exchange Act of 1934 and all of its related rules.

PracticalESG

PracticalESG.com

Keeping you in-the-know on environmental, social and governance developments

California’s Senate Bill 343 is set to enter force this October. The bill is aimed at reducing confusion around the recyclability of packaging waste. It does this by banning recyclability claims unless a product is at least 60% recyclable in 60% of the state. This includes banning the ubiquitous “chasing arrows” seen on most plastic products. Various industry groups are calling foul, alleging that the law violates their First Amendment rights. In a lawsuit challenging the law, they write:

“This lawsuit challenges California Senate Bill 343, Stats. 2021, Ch. 507 (“SB 343” or “the law”), a law that prohibits businesses from using these words and symbols and otherwise truthfully informing consumers that their products and packaging are recyclable, directing consumers to recycle the products or packaging—or even “indicating” that they can be recycled—unless those products satisfy rigid, statewide criteria that are both vague and burdensome to apply in practice… This law violates the free speech clause of the First Amendment to the U.S. Constitution.”

Banning recyclability claims may seem counterintuitive. The defendants take this position, arguing that without symbols and statements, consumers won’t know what can and cannot be recycled. However, there is evidence that recycling symbols are purposefully obtuse, often implying that non-recyclable products can be recycled.

These implications may be technically true, but they are not the whole truth. Just because a product can be recycled doesn’t mean it is cost-effective or practical to do so. This leads to the vast majority of plastics placed in recycling bins to wind up in landfills or the ocean. However, when consumers see the chasing arrows, their minds are put at ease. SB 343 would aim to narrow the criteria for such claims to only those plastics that can be reliably recycled.

The California Attorney General brought an ongoing lawsuit against Exxon Mobil in 2024, alleging they purposefully misled the public about the recyclability of plastics since the 1970’s. Exxon countered by suing the California AG for defamation in Texas court. The outcome of that litigation is still pending.

Our members can learn more about recycling and reuse here.

Interested in a membership with access to the complete range of benefits and resources? Sign up now and take advantage of our no-risk “100-Day Promise” – during the first 100 days as an activated member, you may cancel for any reason and receive a full refund. But it will probably pay for itself before then. Members also save hours of research and reading time each week by using our filtered and curated library of ESG/sustainability resources covering over 100 sustainability subject areas – updated daily with practical and credible information.

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The Editor

Zachary Barlow is a licensed attorney. He earned his JD from the University of Mississippi and has a bachelor’s in Public Policy Leadership. He practiced law at a mid-size firm and handled a wide variety of cases. During this time he assisted in overseeing compliance of a public entity and litigated contract disputes, gaining experience both in and outside of the courtroom. Zachary currently assists the PracticalESG.com editorial team by providing research and creating content on a spectrum of ESG… View Profile