29 Dec, 2025
More governments are requiring companies to address what happens after their products are sold, policies that fall under the term extended producer responsibility (EPR). If your business sells physical goods, these rules may already apply — or will soon. In this article, we break down what EPR is, which products are affected, how companies are being held accountable, and what actions to take now.
EPR is designed to shift the burden of waste from governments to the companies that make and sell the products. That means manufacturers and importers must cover the costs of collecting, processing, and recycling their products at the end of life.
It is a practice that began in Europe in the early 1990s and has since spread to North America, Asia, and beyond. The Organisation for Economic Co-operation and Development defines EPR as a policy approach in which “a producer’s responsibility for a product is extended to the post-consumer stage of its lifecycle.”
Some rules make manufacturers fund recycling programs. Others go further and require them to manage actual product collection, pay eco-fees, or design packaging for recovery.
EPR typically applies to items that pose environmental risks or are difficult to recycle. Laws vary by region, but some common categories are already widely regulated. These include:
Electronics are often covered under take-back programs that mandate collection and secure disposal. California’s Covered Electronic Waste (CEW) program charges consumers at the point of sale, then uses those fees to pay authorized e-waste handlers. In Canada, the Electronic Products Recycling Association (EPRA) manages similar programs across multiple provinces.
EPR rules are expanding into paper, cardboard, plastic, and glass packaging. Oregon’s EPR for Packaging law, passed in 2021, requires manufacturers to fund recycling upgrades and educate consumers on how to dispose of packaging.
More regions are exploring EPR for mattresses, clothing, and appliances. In France, manufacturers already fund textile recycling systems, while U.S. states like California and New York are considering similar mandates.
Companies that manufacture, import, or sell physical goods must start thinking beyond production. With EPR, you must manage what happens after a sale, which entails new financial and operational responsibilities.
Retailers and manufacturers may incur additional fees based on product weight, material type, or recyclability. These charges are designed to cover the full cost of collection, sorting, and processing, so the more difficult it is to recover the product, the higher the cost to the business.
EPR can require reverse logistics systems to facilitate take-back programs or returns management. This may include partnering with recovery vendors or providing evidence of how products were reused, repaired, or recycled. Brands that don’t plan for this kind of risk are likely to face operational disruption and increased spend.
Avoiding EPR rules is no longer just a legal concern. It is also a trust issue. Public agencies and customers now expect brands to demonstrate how they can manage waste. Companies that fail to comply may face penalties or be excluded from certain markets.
Whether or not EPR is law in your region, it’s already shaping how supply chains function. The smart companies are building recovery systems now to reduce compliance risk later. Here is how to do that:
Gaps in tracking and handling could turn into legal or financial exposure. So, start by mapping what happens to your products after customers use them. For instance, find out whether they end up in a landfill or are handled by third-party recyclers.
The more recyclable your product, the less it may cost under EPR. Use mono-materials where possible, avoid hard-to-separate parts, and choose materials compatible with existing recycling systems. This isn’t just an eco-friendly tweak — it’s a way to lower future fees.
Most companies can’t manage take-back, repair, and recycling alone. Working with experts like Close the Loop helps streamline reverse logistics, ensure traceable recovery, and protect value across the entire product life cycle. Contact us today to see how we can help you.