California has sued three plastic bag manufacturers over allegedly false recycling claims and reached a $1.8 million settlement with four others that will stop selling plastic bags in the state.

Attorney General Rob Bonta announced that Novolex Holdings LLC, Inteplast Group Corp and Mettler Packaging LLC face legal action for alleged violations of California’s Environmental Marketing Claims Act, the False Advertising Law and the Unfair Competition Law.

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.

Find out more

Investigation into misleading recycling labels

The lawsuit follows a three-year state investigation into whether plastic bag producers falsely marketed their products as recyclable.

Officials said most of these thicker plastic carryout bags are not accepted by recycling facilities, meaning many end up in landfills or the environment.

The inquiry began after California’s recycling commission urged tougher enforcement on labelling practices that, it said, undermined state efforts to reduce plastic waste.

Four firms agree to settlement and sales halt

Revolution Sustainable Solutions LLC, Metro Poly Corp, PreZero US Packaging LLC and Advance Polybag, Inc. have reached a settlement with the state, agreeing to halt plastic bag sales in California and pay $1.8 million.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

The agreement resolves their alleged violations of the same environmental and advertising laws cited in the lawsuit.

Officials described the settlement as a step toward holding companies accountable for misleading recyclability claims and protecting California’s recycling system.

Crackdown on deceptive environmental marketing

Bonta said the legal action sends a message that no corporation is exempt from environmental laws.

The case comes amid a wider push to strengthen recycling standards and limit single-use plastics in California.

Under new rules taking effect in 2026, retailers will be allowed to provide only recycled paper carryout bags, further tightening regulations on plastic packaging and reinforcing the state’s campaign against deceptive green marketing.

Packaging Gateway Excellence Awards - The Benefits of Entering

Gain the recognition you deserve! The Packaging Gateway Excellence Awards celebrate innovation, leadership, and impact. By entering, you showcase your achievements, elevate your industry profile, and position yourself among top leaders driving packaging industry advancements. Don’t miss your chance to stand out—submit your entry today!

Nominate Now