Truth in Labeling Act of 2026

This bill, known as the "Truth in Labeling Act of 2026," aims to address significant consumer confusion regarding which products are truly recyclable , compostable , reusable , or refillable . Congress finds that nationwide definitions and standardized labeling would provide clarity for producers and consumers, build confidence in labels, and encourage environmentally sound design practices. The legislation seeks to reduce waste, protect resources, and lower costs by ensuring accurate labeling and proper disposal. The bill defines "covered materials" broadly to include packaging, food service products, and beverage containers, regardless of their material type. It establishes specific criteria for a material to be considered recyclable , compostable , reusable , or refillable . For instance, a material is recyclable if it meets industry design guidelines, has no components preventing recycling, is collected by established programs covering at least 60 percent of consumers, and has a responsible end market with commercial value. Producers who choose to label covered materials must ensure these labels are legible, clear, consistent with future standardized on-package labels , and indicate the appropriate disposal method. Conversely, if a material does not meet the defined criteria, producers are prohibited from using any label or marking, including the chasing arrows symbol , that would mislead consumers into believing it is recyclable, compostable, reusable, or refillable. All plastic covered materials must also bear a resin identification code, which generally cannot be placed inside a chasing arrows symbol. The Environmental Protection Agency (EPA) , in coordination with the Federal Trade Commission (FTC) , is tasked with conducting a nationwide analysis of collection facilities to identify which materials meet the new requirements. They will also issue regulations to determine if materials meet the criteria for various claims, including "qualified claims" for materials that meet slightly lower collection thresholds (e.g., 40% for recyclability, 30% for compostability) but have a plan for improvement. The bill explicitly states that converting materials into fuel or for energy generation does not count as recycling. For compostable materials, criteria include adherence to specific ASTM International standards, absence of intentionally added PFAS or heavy metals, and acceptance by at least 50 percent of established composting programs. Plastic or plastic-lined materials that are not compostable are prohibited from using misleading markings like green or brown tinting. Reusable and refillable materials must be designed for durability, multiple cycles, and supported by an existing system or infrastructure for convenient reuse or refill. Within two years, the EPA and FTC must establish standardized on-package labels , including harmonized iconography and terminology for proper disposal pathways. They may also approve standardized digital labels to provide additional information. These label standards will be reviewed and revised at least every five years to ensure ongoing compatibility and best practices. An Advisory Committee , comprising representatives from industry, material recovery facilities, environmental organizations, and government, will be established to provide advice on criteria standards and labeling guidelines. This committee will enhance public engagement and ensure diverse perspectives are considered in the development and updates of these standards. Its meetings will be open to the public, and it will solicit public comment. Beginning two years after the standardized labels are approved, non-compliance with the bill's labeling requirements will be considered a deceptive practice under the Federal Trade Commission Act. Producers found in violation will receive notice and a 180-day period to rectify the issue, after which fines may be imposed. Collected fines will support recycling, composting, reuse, and refill infrastructure and education programs. The bill also mandates the EPA to develop and distribute consumer educational materials based on the nationwide analysis, focusing on best practices for proper disposal and preferred recovery methods. It encourages producers and their supply chains to collaborate with the recycling, composting, reuse, and refill industries to address label compatibility challenges. Except for resin identification codes, the bill does not preempt state laws, allowing states to maintain or enact their own regulations.