California Courts Tighten Scrutiny on “Green” Claims: Key Takeaways from Recent Greenwashing & CRV Litigation

California is seeing a rise in consumer class actions alleging “greenwashing,” specifically “recyclable” labeling improperly applied with California Redemption Value (CRV) charges. Plaintiffs are targeting manufacturers and retailers and, as usual, leveraging California’s wide-reaching trio of consumer protection statutes: the False Advertising Law (FAL), Business and Professions Code § 17500, the Unfair Competition Law (UCL), Business and Professions Code § 17200, and the Consumer Legal Remedies Act (CLRA), California Civil Code § 1750.

And businesses in this space should take note, because courts have shown a growing willingness to allow such claims to proceed.

Trends

Recent litigation in California focuses on:

•  “Recyclable” claims that do not align with California’s statutory definitions of recyclability
•  Marketing that suggests sustainability or circularity without clear substantiation, and
• CRV charges applied to products not eligible for California’s redemption program.

Typical cases allege class claims on behalf of California purchasers.  

Emerging Themes

• Marketing Must Align with Statutory Definitions. California imposes specific criteria for labeling packaging as recyclable. Even industry-standard or nationally accepted terms may not satisfy California’s requirements, creating a compliance trap for companies using uniform packaging across markets.
• Plaintiffs are Pairing Greenwashing with Pricing Claims. Cases demonstrate a trend of combining environmental marketing allegations with CRV-related pricing violations, broadening potential exposure.
•  CRV Compliance is Becoming a Litigation Hotspot. Retailers and beverage sellers face increasing scrutiny regarding when CRV may be charged, whether certain containers are eligible, and whether point-of-sale systems apply CRV fees correctly. Plaintiffs are comparing retailers to their competitors to prove unfair and incorrect CRV charges.
• Broad Remedies Under the UCL. Plaintiffs frequently seek injunctions, labeling changes, and restitution.

Takeaways

Environmental Marketing

• Review all “recyclable,” “sustainable,” or “eco-friendly” statements for compliance with California-specific definitions.
• Maintain clear substantiation for any environmental marketing.
• Confirm packaging, website content, and point-of-sale materials use consistent, compliant language.

CRV Charges

• Audit point-of-sale systems to ensure CRV is applied only to eligible containers.
• Confirm consistent alignment with CalRecycle guidance.
• Confirm pricing is consistent with competitor and industry practices where relevant.

Next Steps

Companies selling consumer products in California should consider:

• Conducting an environmental marketing audit focused on recyclability claims.
• Performing a CRV compliance review across point-of-sale systems.
• Implementing periodic checks as CalRecycle guidance is updated.
• Training marketing and retail teams on California-specific requirements.
• Consulting counsel before launching new labeling, packaging, or pricing changes that reference environmental attributes or CRV charges.

Buchanan’s consumer litigation defense team is here to help you navigate compliance and reporting requirements and to advise on how these laws may affect your company. For any questions or further assistance, please contact Jennifer Oliver in our San Diego Office at (619) 239-8700.