Auto Care Association Challenges Colorado EPR Law Over Unconstitutional Burdens on Businesses

DENVER — Oct. 16, 2026 — The Auto Care Association has filed a federal lawsuit challenging Colorado’s Producer Responsibility Program for Statewide Recycling Act and has asked the Court for leave to intervene. The association alleges that the Extended Producer Responsibility (EPR) law imposes unconstitutional and costly requirements on manufacturers, distributors and other businesses selling packaged products in the state.

The complaint argues that Colorado has delegated broad regulatory authority to private organizations—including Circular Action Alliance and the Lubricants Packaging Management Association, operating as Interchange 360—without sufficient government oversight, transparency or procedural safeguards. Automotive and petroleum-product businesses may be required to register with, report to, pay fees to, and undergo audits by both organizations for different packaging associated with the same product.

According to the association, this overlapping system creates duplicative compliance costs, opaque fees, non-negotiable participation agreements and limited opportunities to challenge private decisions. The complaint further alleges that the law disproportionately burdens interstate commerce and could subject businesses to additional private compliance regimes as more program administrators are approved.

The Auto Care Association is asking the District Court of Colorado to declare the law invalid and to permanently enjoin enforcement against its members.

To learn more about the Auto Care Association’s EPR efforts for the automotive aftermarket industry, visit autocare.org/epr-resources.