Federal judge dismisses nationwide plastic-recycling consumer claims

On September 30, Reuters reported that a US federal judge had dismissed a proposed nationwide consumer class action against ExxonMobil, Chevron and other chemical producers over alleged representations that plastics were broadly recyclable. The plaintiffs alleged a coordinated marketing scheme that increased purchases and prices, while the court found that non-party manufacturers and retailers set prices and that the breadth of some claims undermined their viability; the allegations were not adjudicated on their underlying factual merits. The decision shows that greenwashing cases can fail on causation, standing and remedy even when the challenged sustainability message remains controversial. Counsel assessing environmental claims should therefore review both substantiation and the commercial pathway by which a statement could create measurable consumer or investor harm.