SB 343 Court Ruling Exposes Deep Conflict with California SB 54 Mandates

A federal injunction freezes California’s recycling symbol ban, offering momentary relief to produce shippers caught in a legal tug of war over packaging fees and labeling rules.

A cashier scans clear plastic bag packaged produce at checkout, representing single-use plastic packaging compliance for fresh produce growers under California SB 343, SB 54, and AB 1201
A grocery cashier scans fresh produce packaged in clear plastic film. While a federal court injunction temporarily pauses California’s SB 343 recycling symbol ban, growers remain caught in a regulatory clash with SB 54, which penalizes packaging that cannot be labeled as recyclable.
(Photo: Nexa, Adobe Stock)

California’s SB 343, or the “Truth in Recycling” law, prohibits companies from using the “chasing arrows” recycling symbol to indicate packaging is recyclable unless it meets strict, state-mandated criteria.

In July, the U.S. District Court for the Southern District of California issued a preliminary injunction in a lawsuit brought by the California League of Food Producers against California Attorney General Rob Bonta (California League of Food Producers v. Bonta). The injunction halts the state’s ability to enforce SB 343 and pauses its upcoming Oct. 4 compliance deadline. The court ruled that the law likely violates First Amendment commercial speech protections by banning symbols outright instead of allowing clarifying disclaimers.

Produce Leaders Point to Conflict Between SB 343 and SB 54

Produce industry leaders argue that SB 343 directly conflicts with California’s extended producer responsibility law, SB 54.

“SB 54 is all about recyclability, and the fees that we’re going to get charged is based on can it be recycled or can it not be recycled,” says Gail Delihant, senior director of California government affairs for Western Growers Association, who notes that the chasing arrows help consumers understand whether packaging is recyclable or not. “So, if you can’t put anything on your packaging that tells the consumer where it goes, then how can you comply with SB 54?”

Victoria Lopez, marketing and business development manager for Fox Packaging, says a labeling conflict between states was a core argument of the legal challenge.

“For now, growers are not being forced into California-specific artwork,” she says. “The practical answer for a grower is rarely a separate California print run, which adds real cost in plates, changeovers and inventory complexity that lands hardest on smaller operations. It is a single artwork strategy that satisfies their strictest retail partner, updated on a normal refresh cycle.”

Delihant says she’s been told by potato growers that the bags used for packaging are recyclable, but because California does not have a lot of recycling centers that take those bags, under SB 343, “our guys wouldn’t be able to put the recycling symbol on their bag and they would get charged the highest fees.”

She adds that many growers expressed concern about packaging inventory bought in bulk.

“Many of my members were like, ‘I’ve got all this packaging that I bought. I bought enough packaging for the next three years because I got a good deal on it, and all of it has the symbol on it. Am I going to be able to use it?’” she explains.

Emerald Packaging CEO Kevin Kelly says another regulation for growers to keep in mind is AB 1201, which restricts the use of compostable packaging unless it can be composted in organic compost. Kelly says about 92% of compostable packaging would be impacted.

“At the same time over on the other side of the ledger, SB 54 is saying, if you use compostables, get a dollar-for-dollar credit against your usage,” Kelly says. “So, 54 is encouraging compostables, while the Senate and Assembly are attempting to ban them.”

Growers Advised to Focus on Packaging Performance and Defensible Data

Aaron Fox, executive vice president of Fox Packaging, says that while the labeling deadline is on hold, “the injunction is temporary relief, not a resolution.”

The “compostables” target has moved, which makes it a challenge for growers, Fox says.

“A few years ago, the industry was investing in compostables because that was considered the right direction, and companies changed materials and studied respiration rates to get there,” he says. “Now a package can be genuinely recyclable and still not qualify for the claim in California because the state does not collect and process it. When recyclability depends on each state’s curbside capabilities rather than on the package itself, growers need consistency more than they need another deadline.”

Fox says despite the conflict between SB 54 and SB 343, growers need to choose packaging based on performance and defensible data.

“Choose the material that protects the product, document its composition and recycled content and keep your labeling options flexible,” he says. “Growers who built their compliance approach on real data are in a good position no matter which way the courts land.”

Lopez says SB 343 readiness is part of Fox Packaging’s compliance program, along with monitoring retail partner labeling programs that often run independent of state enforcement.

“That means tracking the litigation, including the appeal we expect, reviewing customer SKUs so everyone knows where their claims and symbols stand today and coordinating with print partners so that if the law is reinstated, the response is an artwork update we have already scoped rather than a scramble. … Our job is to keep customers ready in both directions,” she says.

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