California EPR

California EPR for Textiles

This guide is intended for brands, manufacturers, importers, and online sellers placing textile products on the California market. It covers obligations under California's Extended Producer Responsibility (EPR) framework for textiles, including registration, reporting, labeling, and financial contribution requirements.

What is California EPR for Textiles

California is the first U.S. state to enact a comprehensive EPR law specifically targeting textile waste. The framework is established under SB 707, the Responsible Textile Recovery Act of 2023, which was signed into law on October 7, 2023. The law amends the California Public Resources Code and introduces producer responsibility obligations for covered textile articles sold, offered for sale, or imported into California. The statute is administered by CalRecycle (the California Department of Resources Recycling and Recovery), which has regulatory authority to develop, approve, and enforce the program. SB 707 requires producers of covered textile articles to join a Producer Responsibility Organization (PRO), contribute to funding a statewide textile recovery system, and meet reuse, repair, recycling, and collection targets. The law does not impose product take-back requirements directly on individual producers — obligations are instead discharged collectively through an approved PRO. The law covers a broad range of textile articles, including apparel, footwear, and accessories, with collection infrastructure to be established across California. The program is phased in over several years, with full operational requirements taking effect progressively from 2026 onward.

Does this apply to e-Commerce & online sales

Yes. California's textile EPR law applies to products sold through any channel, including online and direct-to-consumer e-commerce. The obligations attach to the product and the entity placing it on the California market, not to the retail format. Specifically, the following e-commerce business models fall within scope:

• Direct online sellers: Foreign brands and manufacturers that sell directly to California consumers through their own website or platform are treated as producers and must comply.
• Third-party marketplace sellers: Brands and manufacturers that list products on Amazon, Shopify, or other marketplace platforms and ship to California buyers are covered.
• Marketplace facilitators: Under SB 707, marketplace facilitators (platforms) may be assigned producer status for covered textile articles sold by third-party sellers through their platform where the third-party seller has not registered. The precise allocation of responsibility between platforms and sellers is subject to further regulatory guidance from CalRecycle.
• Cross-border importers: Foreign entities that import covered textiles into California and sell them directly to California consumers or retailers are producers under the law.

Distance selling into California — regardless of where the seller is incorporated or domiciled — does not exempt a company from EPR obligations. If a covered textile article is sold or offered for sale in California, the producer is in scope.

Who is the Producer under California EPR

SB 707 defines "producer" in a cascading manner to ensure a responsible entity can always be identified. The following hierarchy applies:

1. Brand owner: The entity that owns or licenses the brand under which the covered textile article is sold in California. This is the primary responsible party.
2. Importer: If the brand owner does not have a legal presence in the United States, the U.S. importer of record for that product is treated as the producer.
3. Retailer: If neither a U.S. brand owner nor a U.S. importer can be identified, the retailer selling the product to California consumers assumes producer status as a fallback.

Key definitions under SB 707:

• Private label manufacturers: A company that manufactures textile articles sold under a third-party retailer's brand is generally not the producer — the brand owner is. However, if the manufacturer owns the brand under which the product is sold, it is the producer.
• Licensees: Entities licensing a brand and placing textile products under that brand in California are likely to be treated as the producer of those products.
• Foreign brand owners without U.S. presence: Foreign companies that own brands sold in California but lack a U.S. legal entity must designate a U.S. Authorized Representative to fulfill obligations on their behalf, or ensure their U.S. importer registers.

The law is designed to capture foreign manufacturers and brands — lack of U.S. incorporation does not remove obligations where products are actively placed on the California market.

Who must register for EPR Textiles in California

Producers who meet the applicable thresholds are required to register with a CalRecycle-approved PRO and comply with all associated program obligations. Registration is not handled directly with CalRecycle but through the approved PRO, which in turn reports to and is overseen by CalRecycle. The following entities are required to register:

4. Producers (brand owners, importers, or retailers as defined above) that sell covered textile articles in or into California and meet the applicable turnover or volume thresholds.
5. Foreign producers without a U.S. legal entity must appoint a U.S.-based Authorized Representative to register and act on their behalf.
6. Marketplace facilitators may be required to register for third-party sellers on their platform who are not independently registered — final rules are subject to CalRecycle rulemaking.

Registration must be completed before placing covered textile articles on the California market once program obligations are activated. CalRecycle is expected to publish the approved PRO and formal registration timelines through rulemaking beginning in 2025–2026.

California EPR Textile registration threshold

SB 707 includes provisions for small producer exemptions and graduated obligations. The following thresholds are established under the law:

Primary Threshold

• Annual gross revenue exceeding $1 million from the sale of covered textile articles in California — producers at or above this threshold are fully subject to all PRO membership, reporting, and financial contribution obligations.

Small Producer Provisions

• Producers with annual gross revenue below $1 million from covered textile articles in California may qualify for reduced obligations or exemptions. The precise structure of small producer accommodations is to be established through CalRecycle rulemaking.
• The law directs the PRO to establish a fee structure that is equitable for small producers and does not create disproportionate burdens on small businesses.

Startup and New Market Entrants

• Newly established companies or brands entering the California market may benefit from transitional arrangements. CalRecycle's rulemaking process will provide further guidance on how new market entrants are treated in the first registration period.

Note: The $1 million threshold is based on California sales of covered textile articles, not total global or U.S. revenue. Foreign companies with limited California exposure should assess their California-specific revenue when determining whether obligations apply.

Textile Articles Covered (and Excluded)

SB 707 defines "covered textile article" broadly. The following categories are within scope:

Covered Categories

• Apparel: Clothing of all types, including tops, bottoms, outerwear, underwear, swimwear, and activewear.
• Footwear: Shoes, boots, sandals, and other footwear with textile components.
• Accessories: Bags, hats, scarves, belts, and similar items made primarily of textile materials.
• Household textiles: Bedding, towels, curtains, and similar home textile products are within scope under the law's definition.
• Fabric by the yard / unfinished textiles: Covered where sold as consumer products; industrial or commercial fabric supplied to manufacturers may be excluded depending on CalRecycle rulemaking.

Excluded Categories

• Textile articles that are subject to a separate California EPR program (e.g., mattresses under the Mattress Recycling Council program).
• Textile articles used exclusively for industrial, commercial, or institutional purposes and not sold to consumers.
• Medical textiles and personal protective equipment (PPE) classified as medical devices.
• Textiles used in motor vehicles, aircraft, or watercraft as integral components.
• Certain specialty textiles may be excluded through the CalRecycle rulemaking process — producers of niche or technical textiles should monitor regulatory guidance.

CalRecycle's regulations will provide the definitive list of covered and excluded products. Producers should assess their product catalog against the statutory definition and track rulemaking developments to confirm scope.

Producer Responsibility Organization (PRO)

Under SB 707, producers must join a CalRecycle-approved PRO to collectively discharge their EPR obligations. Individual compliance is not permitted — all producers must operate through an approved PRO. Key features of the PRO system under SB 707:

7. PRO Approval Process: CalRecycle must approve one or more PROs. A PRO applies to CalRecycle with a detailed Textile Recovery Plan, which must include collection infrastructure plans, reuse and recycling targets, funding mechanisms, and reporting systems. CalRecycle must approve or reject the plan, with opportunities for public comment.
8. Textile Recovery Plan: The approved plan sets out how the PRO will achieve the statutory targets for collection, reuse, and recycling of covered textile articles across California. The plan must be updated at regular intervals.
9. Producer Membership: Producers pay fees to the PRO based on the volume and characteristics of textile articles they place on the California market. The PRO uses these funds to finance collection infrastructure and meet recycling targets.
10. Collection Network: The PRO is responsible for establishing and funding a statewide network of convenient collection points for used textiles, including drop-off bins, in-store take-back programs, and mail-in options.
11. Reuse and Recycling Targets: SB 707 sets minimum targets for the amount of collected textiles that must be reused, repaired, repurposed, or recycled. These targets increase over time.

As of early 2025, CalRecycle is conducting rulemaking to establish the formal requirements for PRO applications and approval. The first approved PRO(s) are expected to be operational by 2026. Producers should monitor CalRecycle's rulemaking calendar and prepare to enroll in an approved PRO once registration opens.

EPR Registration in California

Registration takes place through the approved PRO rather than directly with CalRecycle. The general registration process is expected to follow these steps:

12. Identify PRO: Once CalRecycle approves one or more PROs, producers must select and enroll with an approved PRO. Where multiple PROs are approved, producers may choose which to join.
13. Assess Coverage: Determine which products in your catalog qualify as covered textile articles and calculate your annual California sales revenue from those products.
14. Submit Registration Information: Provide the PRO with required information about your organization, your product categories, and your California sales volume. Foreign companies must designate an Authorized Representative at this stage.
15. Pay Initial Fees: Pay the PRO membership and contribution fees applicable to your production volume and product category. Fee schedules will be established in the PRO's approved Textile Recovery Plan.
16. Receive Confirmation: The PRO will issue confirmation of registration. CalRecycle will maintain a public registry of registered producers through the PRO system.
17. Annual Renewal: Registration is expected to require annual renewal, with updated sales data and fee payments submitted on a recurring schedule.

Formal registration procedures will be defined through CalRecycle rulemaking. Producers should monitor CalRecycle's official website and subscribe to regulatory updates to receive notice when registration opens.

Authorized Representative

Foreign companies — those without a legal entity established in the United States — that place covered textile articles on the California market are required to designate a U.S.-based Authorized Representative to fulfill EPR obligations on their behalf. The Authorized Representative takes on the following responsibilities:

• Registering with the approved PRO on behalf of the foreign producer.
• Submitting required reporting data and declarations.
• Paying applicable fees and financial contributions to the PRO.
• Receiving and responding to compliance communications from the PRO and CalRecycle.
• Being the point of contact for enforcement actions.

Requirements for the Authorized Representative role:

• Legal presence: The representative must have a legal presence in the United States (U.S. company or registered agent).
• Written mandate: The appointment must be formalized through a written agreement specifying the scope of authority.
• No conflict: The representative must not simultaneously hold the same role for a competing brand in circumstances that create a conflict of interest.

Compliance service providers such as Lappa can act as Authorized Representatives for foreign textile producers, handling PRO enrollment, reporting, and fee payments on behalf of the client.

What data must be reported

Producers are required to submit data to the PRO, which in turn reports aggregated data to CalRecycle. The specific data fields will be defined by the PRO's approved reporting system, but SB 707 and analogous EPR frameworks indicate the following information will be required:

• Product categories: Classification of covered textile articles by type (apparel, footwear, household textiles, accessories, etc.).
• Weight or volume: Total weight (in pounds or kilograms) of covered textile articles sold or supplied into California during the reporting period.
• Fiber composition: Material breakdown (e.g., cotton, polyester, wool, blended), which may be used for eco-modulation of fees.
• Sales channel: Whether products are sold through retail, e-commerce, wholesale, or other channels.
• Number of units: Unit count by product category, where required by the PRO's reporting format.
• Certifications and standards: Information about any environmental certifications (e.g., GOTS, bluesign, Cradle to Cradle) may be relevant for eco-modulation purposes.
• Collection and take-back activity: Any independent collection programs operated by the producer that may offset PRO obligations.

Producers should establish internal data collection systems now to track California-specific sales volumes and product compositions in preparation for reporting requirements.

First reporting period and EPR reporting deadlines

SB 707 was signed into law on October 7, 2023. The law establishes a phased implementation timeline, with CalRecycle required to complete rulemaking before the program becomes fully operational. Key milestones under the statutory framework:

• 2024–2025: CalRecycle conducts rulemaking, stakeholder consultations, and PRO application processes.
• 2026 (anticipated): CalRecycle approves the first PRO(s) and the Textile Recovery Plan. Producer registration opens.
• 2026–2027 (anticipated): Producers complete registration and begin paying contributions to the approved PRO. Reporting obligations commence.
• Annual reporting: Once the program is operational, producers will be required to submit annual reports covering the prior calendar year's sales data. Specific deadlines will be set by the PRO's approved plan.

These timelines are indicative and subject to change based on CalRecycle's rulemaking progress. Producers should treat 2026 as the planning target for first registration and begin internal preparation immediately.

Labels & marketing claims

SB 707 includes provisions on labeling and consumer communication, building on existing California and federal labeling requirements. Producers should be aware of the following:

Existing Labeling Requirements

• Federal Textile Fiber Products Identification Act: Requires disclosure of fiber content, country of origin, and manufacturer/importer identity on textile labels. This remains a baseline obligation for all textile products sold in the U.S.
• California Proposition 65: Products containing listed chemicals above threshold levels require warning labels on products sold in California.

EPR-Specific Labeling

• Collection information: Once the PRO establishes a collection network, producers may be required or encouraged to include information on collection options on product labels or packaging.
• Recyclability claims: Marketing claims about recyclability, sustainability, or circular credentials must be substantiated. California's AB 1305 (Voluntary Carbon Market Disclosures Act) and the FTC Green Guides provide the framework for permissible environmental marketing claims.
• "Made from recycled content" claims: Must meet California's substantiation requirements. Claims such as "made from 100% recycled materials" must be accurate and not misleading.

Forthcoming PRO Labeling Requirements

• The approved PRO's Textile Recovery Plan may introduce additional labeling requirements, such as QR codes linking to collection information or fiber content disclosures to support sorting. Producers should monitor PRO plan approval.

EPR Eco fees & Eco-modulation

Producers pay fees to the approved PRO to fund the statewide textile recovery system. The fee structure will be established in the PRO's approved Textile Recovery Plan and must be approved by CalRecycle. While the exact fee schedule is not yet determined, SB 707 provides direction on how fees should be structured:

Fee Basis

• Fees are expected to be calculated primarily on the weight of covered textile articles placed on the California market (per pound or per kilogram).
• Unit-based components may also be applied for certain product categories.

Eco-Modulation

SB 707 explicitly requires the PRO to implement eco-modulation — the adjustment of fees based on the environmental performance of covered textile articles. The following factors are expected to influence fee levels:

• Fiber composition: Synthetic fibers (e.g., polyester, nylon) may attract higher fees than natural or recycled fibers due to lower recyclability and microplastic concerns.
• Recyclability: Products designed for recyclability (mono-material construction, easily removable hardware) may receive lower fees.
• Recycled content: Products incorporating post-consumer recycled materials may qualify for fee reductions.
• Durability and repairability: Products designed for longevity, with repair programs or warranties, may benefit from eco-modulation discounts.
• Hazardous substances: Products containing PFAS, heavy metals, or other restricted substances may incur higher fees.
• Certifications: Third-party environmental certifications (e.g., GOTS, bluesign, Fair Trade) may be recognized in eco-modulation calculations.

Producers with more sustainable products should document their fiber composition, recycled content, and certifications now to position themselves to benefit from eco-modulation when the fee schedule is published.

Risks, penalties & common mistakes

Non-compliance with California's textile EPR law carries significant legal and reputational risks. The following are the key enforcement mechanisms and common compliance failures:

Penalties Under SB 707

• Civil penalties: CalRecycle has authority to impose civil penalties on producers that fail to register, report, or pay required fees. Penalty levels will be established through rulemaking but are expected to be consistent with other California EPR frameworks (e.g., up to $50,000 per day for ongoing violations).
• Market prohibition: CalRecycle may prohibit the sale of covered textile articles by non-compliant producers in California.
• Public disclosure: Non-compliant producers may be listed on a public registry of non-registrants, creating reputational and commercial risk with California retailers and distributors.

Common Compliance Mistakes

• Assuming non-U.S. companies are exempt: Foreign brands selling to California consumers are subject to the law. The obligation follows the product, not the location of the seller.
• Misidentifying the producer: Brands licensing third-party products without confirming which entity is registered as producer may find themselves in scope unexpectedly.
• Underreporting California sales: Using total U.S. or global revenue instead of California-specific sales when assessing threshold applicability.
• Failing to register before sales commence: Producers must be registered before placing covered articles on the California market once obligations activate.
• Neglecting marketplace obligations: Brands selling through Amazon or other marketplace platforms assuming the platform handles compliance — responsibilities depend on whether the platform has registered for the seller.
• Missing fee payment deadlines: Late payments to the PRO may result in removal from the registered producer list and associated market access risks.
• Inadequate data systems: Inability to report accurate California sales volumes and fiber composition data when reporting obligations commence.

What E-Commerce Sellers Should Do Now

Foreign e-commerce sellers and brands entering or operating in the California market should take the following steps to prepare for compliance:

• Assess product scope: Review your product catalog against the SB 707 definition of covered textile articles and identify which products fall within the EPR framework.
• Calculate California revenue: Establish a reliable method for tracking California-specific gross revenue from covered textile articles to determine threshold applicability.
• Monitor CalRecycle rulemaking: Subscribe to CalRecycle's regulatory updates and track the PRO approval process. The first PRO approvals are expected by 2026.
• Appoint an Authorized Representative: If you do not have a U.S. legal entity, identify a qualified U.S.-based representative to handle PRO registration and compliance obligations.
• Prepare product data: Collect and organize data on fiber composition, recycled content, weight, and unit counts for California sales. This data will be required for registration and reporting.
• Evaluate eco-modulation positioning: Assess your products for design attributes that may qualify for eco-modulation fee reductions (recycled content, recyclability, durability) and document relevant certifications.
• Review labeling and marketing claims: Ensure all environmental claims on products sold in California comply with California law, FTC Green Guides, and AB 1305.
• Engage a compliance partner: Consider working with an experienced EPR compliance provider to manage PRO enrollment, data reporting, and ongoing fee payments.

FAQ

• Is California's textile EPR law mandatory for all companies

Yes, SB 707 is mandatory for all producers meeting the applicable threshold. It is not a voluntary program. Any producer — including foreign brands and importers — placing covered textile articles on the California market with annual California revenue from covered articles exceeding $1 million must comply. There are no opt-out provisions.

• Do foreign sellers without a U.S. office need to comply

Foreign companies selling covered textiles directly to California consumers — through e-commerce or other channels — are treated as producers under SB 707 if they meet the threshold. They must either ensure their U.S. importer registers, or appoint a U.S.-based Authorized Representative to register and comply on their behalf. The absence of a U.S. legal entity does not create an exemption.

• What is the registration threshold, and how is it calculated

The primary threshold is $1 million in annual gross revenue from covered textile articles sold in California. This is California-specific revenue, not total U.S. or global revenue. Producers below this threshold may qualify for reduced obligations or exemptions. The precise treatment of sub-threshold producers will be confirmed through CalRecycle rulemaking.

• Are there labeling requirements for covered textile articles

SB 707 does not yet impose specific EPR labeling requirements — these may be introduced through the approved PRO's Textile Recovery Plan. However, producers must comply with existing labeling obligations under the Federal Textile Fiber Products Identification Act, California Proposition 65, and California's AB 1305 on environmental marketing claims. Marketing textiles as "recyclable" or "sustainable" requires substantiation.

• If I sell through Amazon or another marketplace, does the platform handle my EPR obligations

Not automatically. Marketplace facilitators may assume producer responsibility for third-party sellers who are not independently registered, but this depends on the specific platform's agreement with the approved PRO and CalRecycle's final rules on marketplace obligations. Brands and manufacturers selling through marketplaces should not assume platform coverage — they should register independently or confirm in writing that the marketplace has assumed their obligations. Failure to confirm this in advance creates compliance risk.