NAW Seeks Injunction on Oregon Law

The National Association of Wholesaler-Distributors (NAW) filed a motion for a preliminary injunction asking the U.S. District Court for the District of Oregon to suspend enforcement of Oregon’s Plastic Pollution and Recycling Modernization Act. NAW argues that the law creates an opaque, privately controlled regulatory system that is driving unexpected and unsustainable costs for businesses across the interstate supply chain.

In July, NAW sued the Oregon Department of Environmental Quality (DEQ) and others asserting that the Act violates the Dormant Commerce Clause and Due Process Clause by imposing burdens on interstate distributors and delegating sweeping regulatory authority to a private, third-party organization dominated by large corporate interests. The law requires distributors to sign a mandatory, non-negotiable contract with that organization and pay retrospective fee assessments calculated under a confidential methodology not subject to meaningful state oversight.

The first round of invoices issued in July 2025 revealed fees significantly higher than publicly projected, often exceeding product margins—especially for small and mid-sized distributors. Businesses also face complex and unclear obligations within multistate supply chains and the risk of penalties of up to $25,000 per day for noncompliance. A second round of invoices is expected in January 2026. DEQ was not required to approve the new assessments, and only the private entity’s controlling companies have seen the fee methodology.

“Rather than improve recycling outcomes, Oregon’s program operates as a closed regulatory system run by private interests, with binding financial consequences for businesses that have no control over packaging design or disposal,” Brian Wild, Chief Government Relations Officer, says. “Our members’ July invoices show a system that is unpredictable, opaque, and economically unsustainable. With January assessments approaching and no transparency into how fees are set, businesses are facing uncertainty, instability, and costs they cannot absorb.”

NAW’s injunction request asks the Court to pause all obligations under the Act—including reporting and payment requirements—pending final resolution of the case. The filing argues that NAW members face imminent and irreparable harm, including unrecoverable compliance costs, competitive distortions, and the threat of substantial civil penalties.