California’s Responsible Textile Recovery Act To Go Into Effect In 2026

The first statutory deadlines under California’s Responsible Textile Recovery Act of 2024 (“Act”) are set to take effect next year.  In 2024, Governor Gavin Newsom signed into law SB 707 establishing the Act—landmark legislation extending responsibility (and liability) to apparel manufacturers, brands, retailers, and others selling textiles in California in order to address the growing volume of used clothing and textiles entering landfills. 

The Act requires “producers” that sell certain “covered products” (see definitions below) in California to effectively take responsibility for the collection, transport, repair, reuse, and recycle of textile and apparel products, thereby minimizing waste, greenhouse gases, and other environmental and public health impacts. The Act calls for the creation of a first of its kind Extended Producer Responsibility Program (EPR).  Producers will comply with the Act by creating and/or joining collective entities called “Producer Responsibility Programs” (PROs) charged with creating and implementing programs on behalf of their members to comply with the Act.  Compliance with the Act will be overseen by California’s Department of Resources Recycling and Recovery (CalRecycle).

If you are a “producer” ($1,000,000 or more in annual worldwide turnover) who operates in the fashion, apparel, or textile industries—or in any business that sells covered textile products in the California market—you should begin reviewing your obligations under the Act and plan accordingly for compliance.

What Is a “Covered Product”?

The Act defines a “covered product” as “an apparel or textile article,” further identified to include only:

• Undergarments, shirts, pants, skirts, dresses, overalls, bodysuits, costumes, vests, dancewear, suits, saris, scarves, tops, leggings, school uniforms, leisurewear, athletic wear, sports uniforms, swimwear, formal wear, onesies, bibs, footwear, handbags, backpacks, knitted and woven accessories, jackets, coats, snow pants, ski pants, and everyday uniforms for workwear; and
• Blankets, curtains, fabric window coverings, knitted and woven accessories, towels, tapestries, bedding, tablecloths, napkins, linens, and pillows.

Some categories, such as personal protective equipment (PPE) , military clothing items, and single-use products like paper towels, toilet paper, wet wipes, etc., are currently not included within the definition of “covered product” under the Act.

Who Is A “Producer”?

The Act defines a “producer” broadly to include:

(1) any “person who manufactures a covered product and who owns or is the licensee of the brand or trademark under which that covered product is sold, offered for sale, or distributed for sale in or into the state;”

(2) if there is no person in California who qualifies as a producer based on that definition in paragraph (1), the “producer” is “the owner of a brand or trademark or, if the owner is not in the state, the exclusive licensee of a brand or trademark under which the covered product is sold, imported for sale, offered for sale, or distributed for sale in or into the state, regardless of whether the trademark is registered;”

(3) if there is no person in California who qualifies as a producer based on paragraphs (1) or (2), the “producer” is “the person that imports the covered product into the state for sale or distribution;” or

(4) if there is no person in California who qualifies as a producer based on paragraphs (1), (2), or (3), the “producer” is the “distributor, retailer, or wholesaler who sells the product in or into the state.”

Sellers that only sell secondhand products or have less than $1,000,000 in annual aggregate global turnover adjusted annually are not “producers” under the Act. 

What Are Producers’ Obligations under the Extended Producer Responsibility Program (EPR)?

1.             Form and Join a Producer Responsibility Organization (PRO)

To comply with the Act, producers must form and join a PRO.  By January 1, 2026, the governing body of a proposed PRO must submit an application to CalRecycle describing how the PRO satisfies the Act’s requirements.  If the proposed PRO meets the requirements of the Act, CalRecycle must approve the PRO by March 1, 2026, and, by July 1, 2026, all producers must join a PRO approved by CalRecycle. 

CalRecycle then must adopt regulations implementing the Act, which shall not be effective prior to July 1, 2028.

         2.             Implementation of a Producer Responsibility Plan

Within thirty days of implementation of the regulations, individual producers or the PRO must provide CalRecycle with a list of brands of covered products that each producer sells, distributes, imports, or offers for sale in or into California and update that list on or before January 15 of each year thereafter.

Then, within twelve months of the implementation of the regulations, the PRO must submit to CalRecycle a complete plan for the collection, transportation, repair, sorting, recycling, and the safe and proper management of covered products.  By July 1, 2030, the PRO must have a plan that has been approved by CalRecycle.

Within three months of approval from CalRecycle, the PRO must begin to implement the approved plan, which shall be fully implemented within twelve months of approval.

Among other requirements, the plan must include a description of how the PRO will provide a free and convenient drop off or a collection system for all covered products in each county within California meeting the statutory requirements and a comprehensive statewide education and outreach program to educate consumers and promote participation.

                  3.             Fee Structure

In order to finance the EPR, the Act allows for each PRO to charge its participant producers annual fees that are eco-modulated (i.e. adjusted based on a product’s environmental impact), as laid out in the plan, in order to incentivize design choices that facilitate the goals of reuse, repair, and recycling through reduced fees, while using malus fees (penalties) to disincentivize practices and materials incongruent with the plan.

Note that the Act also requires certain online marketplaces, as defined by Cal. Civil Code section 1749.8, to annually notify CalRecycle and the PRO of all third-party sellers with sales of covered products over $1,000,000 on their online marketplace in the preceding year (including only those transactions for which payment is processed by the online marketplace directly or through its payment processor), unless they had no such sales. 

Enforcement & Penalties for Non-Compliance

Non-compliance with the Act may result in significant administrative penalties, including $10,000 per day for violation of the Act and up to $50,000 per day for knowing or intentional violations.  CalRecycle is authorized to issue these penalties, as well as enforce other corrective actions relating to the PRO’s plan or mandate additional reporting upon a written finding of non-compliance with the Act.

Takeaways for Your Business

Companies that manufacture or sell textile products in California—whether directly or through third-party retailers—should consider taking these immediate steps:

1. Determine “Producer” Status: Review your business operations to determine if you are a covered “producer” or “online marketplace” as defined by the Act.
2. Join or Form a PRO: Begin discussions with industry groups and trade associations about joining a PRO or investigate whether you seek to form one. 
3. Plan Ahead for Deadlines and Compliance: By January 1, 2026, a PRO must submit its application to CalRecycle, so covered producers will now want to begin engaging in discussions with a potential PRO to determine what the PRO intends to include in its application and proposed plan.  It will also be crucial for covered producers to understand the lifecycle of their products and analyze how the costs associated with compliance with the Act may affect their businesses.

Eugene M. Pak is a Director in our Intellectual Property and Business Litigation practices groups, and Chair of our Apparel & Fashion practice group.  He provides strategic advice to his clients in both transactional and litigation matters. He acts as outside general counsel to many of his clients, and specialized intellectual property and litigation counsel to others.  His clients include apparel companies, food & beverage companies including alcohol beverage makers, restaurants and bars,  technology companies, and many others.

MaryJo. E. Smart Pinocchio is an associate in our Business Litigation and Intellectual Property practice groups. Her practice focuses on complex commercial litigation, intellectual property disputes, and general business advising. She has in depth litigation experience ranging from pre-litigation and the inception of a case through trial.