A coalition of five U.S. state Attorneys General — from Florida, Idaho, Iowa, Mississippi, and South Carolina — has formally raised antitrust and consumer protection concerns regarding the U.S. Plastics Pact, a voluntary initiative aimed at advancing circular economy principles for plastic packaging in the United States.
In a letter dated 29 October 2025, the Attorneys General allege that the Pact’s coordinated sustainability targets may amount to anti-competitive behavior under U.S. federal and state laws. Specifically, they question whether the Pact’s efforts to align stakeholders around shared 2025 goals — including eliminating certain plastic formats and increasing the use of recycled content — may “unreasonably restrain trade” or artificially limit the quality, output, or availability of consumer products.
The Pact’s four key targets include:
- Eliminating identified problematic or unnecessary plastic packaging.
- Ensuring 100% of plastic packaging is reusable, recyclable, or compostable.
- Achieving effective recycling or composting of 50% of plastic packaging.
- Reaching an average of 30% recycled or responsibly sourced biobased content in plastic packaging.
According to the letter, these shared targets may be enforced through internal rules that could pressure member organizations to act uniformly, irrespective of market forces. The Attorneys General argue this “collective action” could lead to reduced competition, higher consumer prices, and potential violations of the Sherman Antitrust Act.
While the letter stops short of announcing formal legal action, it requests clarification from the Pact on whether it intends to modify its governance or transparency policies, and how it plans to ensure compliance with antitrust and consumer protection laws.
This development highlights growing regulatory interest in voluntary environmental agreements that involve multiple private actors and intersect with commercial decision-making. It may also influence future dialogues on the design of extended producer responsibility (EPR) systems and other collaborative plastic reduction frameworks, particularly where they resemble standard-setting or industry-wide coordination.
Find a copy of the letter here.
