EPR Penalties: $5K-$100K/Day and How to Stay Compliant

The enforcement provisions in U.S. packaging EPR laws are not symbolic. Penalties range from $5,000 to $100,000 per day across states, and multiple states have activated sales restrictions that bar non-compliant producers from their markets entirely. For companies still evaluating whether EPR compliance deserves budget and organizational attention, the penalty structures should resolve any ambiguity: the cost of non-compliance vastly exceeds the cost of compliance.

The Penalty Landscape by State

Oregon's SB 582 authorizes penalties up to $25,000 per day for violations of its EPR requirements. Oregon is the most operationally mature program — producers have been paying fees since 2024, and the sales restriction took effect July 1, 2025. Any producer selling covered packaging in Oregon without CAA registration or an approved individual plan is accumulating daily penalty exposure on top of the market access restriction. Colorado's HB 22-1355 operates with a similar penalty framework, and its sales restriction also took effect July 1, 2025. California's SB 54 carries penalties ranging from $5,000 to $100,000 per day depending on the nature of the violation and whether it is a first-time or repeat offense — and its sales restriction takes effect January 1, 2027. Across all seven states, the penalty ranges reflect a deliberate legislative choice to make non-compliance more expensive than compliance.

Sales Restrictions: The Real Enforcement Lever

While daily fines capture attention, sales restrictions are the enforcement mechanism that carries the most material financial consequence. A producer barred from selling in Oregon, Colorado, or California loses access to those markets entirely — not temporarily, but until compliance is established. For national brands, the lost revenue from market exclusion dwarfs even the maximum daily penalty amounts. The sales restriction timeline is staggered: Oregon and Colorado activated theirs on July 1, 2025; California's takes effect January 1, 2027; Minnesota's on January 1, 2029; and Washington's on March 1, 2029. Maine and Maryland have not set statutory sales restriction dates but retain penalty authority through rulemaking. The practical implication is that a producer selling nationally without EPR compliance is progressively locked out of state markets over the next three years.

Who Faces the Greatest Risk?

The producer definition in EPR laws follows a tiered approach — brand owner first, then importer/distributor, then retailer — which means enforcement exposure is not limited to the company whose name appears on the package. Private-label retailers who import products may be the responsible "producer" in states where no brand owner has registered. Distributors and importers of foreign-manufactured goods may find themselves as the compliance-obligated entity even though they did not design the packaging. Small producer exemptions (typically $2 million to $5 million in revenue, varying by state) provide some relief, but companies near those thresholds should verify their status in each state, as the calculation methodology may differ.

The Compliance Roadmap

Staying compliant across seven states (and eventually more) requires a systematic approach. Venable's October 2025 guidance outlined three foundational steps that apply universally. First, determine product coverage: review your packaging portfolio against each state's specific material and product definitions. Maine covers consumer packaging only (post-2025 amendment); Oregon has three categories (packaging, printing/writing paper, food service ware); California covers single-use packaging and single-use plastic food service ware. A product covered in one state may not be covered in another, and vice versa. Second, assess producer status: identify which entity in your corporate structure meets the producer definition in each state. In complex corporate structures with multiple brands, subsidiaries, and distribution arrangements, this analysis may yield different answers in different states. Third, register with the appropriate PRO: in five states, this means CAA; in Maine, it will be the Stewardship Organization once selected; in Maryland, multiple PROs may be available.

Beyond Registration: Ongoing Compliance

Registration is the entry point, not the finish line. Ongoing compliance requires annual supply data reporting (volume of covered materials placed on market, by material type and format), fee payment based on that reported data, and tracking of packaging portfolio changes that may affect coverage or fee levels. Oregon and Colorado producers are already in this annual cycle. Maine producers will join it by May 31, 2026. The reporting burden increases with each state added, but the underlying data is the same — what packaging you sell, made of what materials, in what quantities. Companies that build a single packaging data system capable of generating state-specific reports from a common dataset will manage this far more efficiently than those maintaining separate state-by-state processes.

Practical Steps for 2026

For companies that have not yet begun EPR compliance, the priority sequence is: (1) Register with CAA immediately for Oregon and Colorado (sales restrictions already in effect), Minnesota (mandatory PRO membership), and California (January 2027 sales restriction approaching). (2) Prepare for the July 1, 2026 registration deadlines in Maryland and Washington. (3) Prepare for Maine's May 31, 2026 registration and reporting deadline. (4) Begin auditing your packaging portfolio against California's SB 54 targets (30% recycling by 2028, 100% recyclable/compostable by 2032, 25% plastic reduction). (5) Establish internal packaging data collection processes that will support annual reporting across all states. (6) Engage with your PRO (CAA or others) on eco-modulation opportunities — packaging design changes that improve recyclability may reduce your EPR fee burden.

The Cost of Waiting

Every day of non-compliance in a state with active enforcement is a day of penalty exposure. Oregon's $25,000/day maximum means that a producer who has been non-compliant since the July 2025 sales restriction could face theoretical exposure exceeding $5 million by early 2026. While enforcement agencies may exercise discretion in practice, the legal exposure is real and the reputational risk of being identified as non-compliant in public enforcement actions is significant. The companies that invested in EPR compliance early — building data systems, registering with CAA, and integrating EPR costs into packaging decisions — are now positioned to absorb new state requirements incrementally. Those that delayed face the choice between rapid, expensive catch-up compliance or growing market access risk.

Sources: Proskauer (Oct 2025); Venable (Oct 2025); Holland & Knight (Jan 2026); H2 Compliance (Dec 2025)

Constellation Insights, a division of Trash Club Ventures, provides strategic regulatory intelligence for brands, investors, and operators navigating the circular economy.