Truth in Labeling Act of 2026

The Truth in Labeling Act of 2026 aims to address significant consumer confusion regarding the recyclability, compostability, reusability, and refillability of various products. It seeks to establish nationwide definitions and standardized labeling criteria for covered materials , which include packaging, food service products, and beverage containers. This initiative is intended to provide clarity for both producers and consumers, encourage sustainable design, and reduce waste. The bill mandates the Environmental Protection Agency (EPA), in coordination with the Federal Trade Commission (FTC), to define specific criteria for when a material can be labeled as recyclable, compostable, reusable, or refillable. For instance, a material is considered recyclable if it meets industry design guidelines, has no components preventing recycling (or provides clear removal instructions), is collected by programs covering at least 60% of consumers, and has a responsible end market. A qualified claim of recyclability is allowed for materials collected by programs covering at least 40% of consumers, provided there is an approved plan to meet full recyclability criteria within two years. Similarly, compostable materials must adhere to specific ASTM standards, be free of intentionally added PFAS or heavy metals, and be accepted by at least 50% of established composting programs. Reusable and refillable materials must be designed for durability, multiple uses, and supported by convenient infrastructure. The bill also prohibits misleading labels on non-qualifying materials, such as green or brown tinting on non-compostable plastics, and requires plastic covered materials to display a resin identification code, but generally not within a chasing arrows symbol unless specific conditions are met. A key provision involves the development of standardized on-package labels by the EPA and FTC within two years of enactment, with regular reviews and revisions every five years. These labels will feature harmonized iconography and terminology to clearly indicate proper disposal pathways and provide instructions for qualified claims. A standardized digital label, such as a QR code, may also be approved to offer additional information. To facilitate this process, an Advisory Committee will be established, comprising representatives from industry, material recovery facilities, environmental organizations, and government. This committee will provide recommendations on criteria standards and labeling guidelines. The EPA will also publish lists of qualifying materials and conduct a nationwide analysis of recycling, composting, reuse, and refill facilities. Enforcement of these standards will fall under the Federal Trade Commission Act, with non-compliance considered a deceptive practice two years after standardized labels are established. Producers violating these provisions will face civil penalties, including fines after a 180-day rectification period. These fines will be directed to enhance recycling, composting, reuse, and refill infrastructure and consumer education programs, supplementing existing funding. The bill includes exceptions for materials manufactured before new standards or revisions take effect, allowing a grace period. It also clarifies that the Act's provisions supersede the FTC's existing Green Guides in case of conflict. Finally, the EPA is tasked with developing and distributing consumer educational materials to help the public understand the new labels and preferred recovery methods for covered materials, ensuring a comprehensive approach to improving labeling accuracy and consumer behavior.