CA Grocery Prices Expected To Spike As Fees From New Law Begin

Californians are projected to see rising prices at the grocery store as fees related to a new packaging law go into effect, according to reports.

Preliminary fees tied to 2022’s Plastic Pollution Prevention and Packaging Producer Responsibility Act are set to take effect in August, according to KTLA, which reported the law aims to decrease single-use plastics and make all packaging sold in the state recyclable or compostable by 2032.

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Fees will be higher for companies that produce more nonrecyclable packaging, the outlet reported, with over 500,000 businesses in California anticipated to see an increased cost of goods if producers hike prices due to the fees.

The state estimates households will pay up to $190 more per year because of the fees, according to KTLA, although SFGate reported the law will increase consumer grocery costs by an average of $1,300 annually, citing Dairy Institute of California Executive Director Katie Davey.

State Sen. Ben Allen, who put forth the law, has argued it protects consumers, forcing companies to be financially accountable for their waste, according to SFGate.

While initial fees are set to go into effect next month, companies won’t be required to comply with the new regulations until 2027, KTLA reported.

In the meantime, multiple lawsuits related to the law have been filed, according to SFGate.