The National Association of Wholesaler-Distributors (NAW) moved for a preliminary injunction to pause enforcement of Oregon’s Plastic Pollution and Recycling Modernization Act, citing what it describes as constitutional flaws, inadequate oversight, and significant economic impacts on businesses operating across state lines. Filed in the U.S. District Court for the District of Oregon, the motion highlights NAW’s concerns that the law establishes a privately controlled regulatory structure that imposes unpredictable and escalating financial obligations on distributors.

In July, NAW initiated a lawsuit against the Oregon Department of Environmental Quality and others, asserting that the Act violates both the Dormant Commerce Clause and the Due Process Clause. The association argues that the law delegates broad regulatory authority to a private third-party organization dominated by large corporate stakeholders, compelling distributors to sign a mandatory, non-negotiable contract and pay fees calculated through a confidential methodology that lacks meaningful state oversight.

According to NAW, the first round of invoices issued in July 2025 far exceeded publicly projected costs, with some fees surpassing product margins, particularly for small and mid-sized distributors. Members also report confusion over obligations within multistate supply chains and concerns about penalties of up to $25,000 per day for noncompliance. A second round of invoices is expected in January 2026, and the Department of Environmental Quality is not required to review or approve the assessments.

“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,” said Brian Wild, Chief Government Relations Officer at NAW. “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.”

The injunction request asks the court to suspend all obligations under the Act, including reporting and payment requirements, pending the outcome of the case. NAW argues that its members face imminent and irreparable harm, including unrecoverable compliance costs, competitive disadvantages, and the threat of substantial civil penalties if enforcement continues before the constitutional issues are resolved.