Sustainability & ComplianceTKT-C481

SB 707 textile EPR rollout advances as AAFA court challenge proceeds

Producers face $10,000-a-day fines for missing SB 707 registration as CalRecycle workshops continue and AAFA's challenge to Landbell USA heads to a March 2027 hearing.

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October 20, 2026
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California textile EPR rollout continues as Landbell court case proceeds
California textile EPR rollout continues as Landbell court case proceedsAndreasAux / pixabay

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  1. Producer registration under SB 707 was due 1 July 2026, at a fee of $1,000 for the year through 30 June 2027; non-registration risks fines of up to $10,000 per day.

  2. CalRecycle selected Landbell USA as sole PRO in February 2026; a court denied AAFA's preliminary injunction on 17 September, with a hearing set for 12 March 2027.

  3. The next CalRecycle workshop is 12 November 2026; the needs assessment is due 1 March 2027 and formal rulemaking is expected to begin mid-2027.

  4. Regulations cannot take effect before July 2028, per ACT's second SB 707 implementation briefing.

Textile producers selling into California now face fines of up to $10,000 per day if they skip registration under SB 707, the US' first extended producer responsibility law for textiles, according to the latest implementation briefing from American Circular Textiles (ACT). The statutory registration deadline passed on 1 July 2026, though the portal remains open. Registration for the 1 July 2026 to 30 June 2027 period costs $1,000.

ACT published the update in its second implementation briefing on SB 707, as the state's programme continues to move through parallel tracks: regulatory workshops, a pending needs assessment, and a court challenge to the programme's administrator.

Who runs the programme?

CalRecycle selected Landbell USA in February 2026 as the programme's sole producer responsibility organisation (PRO). Landbell's board has since been updated to include national brands, California retailers and other stakeholders.

That selection is contested. The American Apparel and Footwear Association (AAFA) has challenged CalRecycle's choice of Landbell in court. On 17 September, the court denied AAFA's request for a preliminary injunction, finding the trade group had not shown irreparable harm or a likelihood of success on the merits at that stage.

A hearing on the underlying challenge is scheduled for 12 March 2027. CalRecycle's implementation work and Landbell's activities continue while the case proceeds. The briefing did not detail the legal arguments or say when the wider case might resolve.

What happens next on the regulatory calendar?

CalRecycle is holding informal public workshops through spring 2027 to gather feedback on regulatory concepts. Two have taken place so far, on 13 August and 29 September.

The next milestones:

  • 12 November 2026: hybrid workshop, 10 am to 5 pm Pacific Time, covering the producer responsibility plan, contingency planning, plan termination and revocation, cessation of PRO status and annual reporting
  • 1 March 2027: deadline for the required needs assessment to be submitted to CalRecycle — no contractor had been announced as of 12 October
  • Mid-2027: formal rulemaking expected to begin

Any resulting regulations cannot take effect before July 2028, the briefing notes.

What does this mean for sourcing and compliance teams?

Rachel Kibbe, ACT's founder and CEO, framed the workshops as decisive for how the law will function in practice. "CalRecycle's informal workshops are where the details of SB 707 will take shape," she said. "The whole textile value chain needs to be in that room."

Kibbe added: "Our SB 707 hub is a free resource that puts clear, standardised implementation information in one place, so you show up informed, then get involved." She also issued a broader warning for brands sourcing beyond California: "What happens in California sets the template for everyone else."

For apparel and soft-goods producers, the near-term decision is straightforward. Brands and retailers with California sales should verify their registration status now, given the $10,000-per-day exposure, and put compliance staff or trade-association representation into the 12 November workshop. The March 2027 needs assessment and the mid-2027 rulemaking will determine the fee structure and operational obligations that take shape from July 2028 — and the AAFA hearing that same month could still reset who administers the programme.

via just-style (Source)

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Olivia Hart

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Senior reporter covering regulation, policy and their impact on Light industry and softgoods manufacturing at Softgoods Report.

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