The Independent Lubricant Manufacturers Association (ILMA) has filed a lawsuit in Colorado state court challenging the implementation of the state’s packaging recycling law, raising concerns about fairness, transparency and the burden on small businesses.
The legal action targets Colorado’s Producer Responsibility Program for Statewide Recycling Act, a law that shifts the cost of recycling packaging materials from local governments to companies that produce and sell those materials. The program is overseen by the Colorado Department of Public Health and Environment.
ILMA argues that the current structure disproportionately affects independent lubricant manufacturers, many of which operate on tight margins. According to the complaint, the financial and administrative burden could force smaller companies to exit the Colorado market entirely.
A central issue in the lawsuit is the requirement for companies to join recycling programs operated by private organizations. Businesses must sign “take-it-or-leave-it” contracts and pay fees set by these entities, with limited transparency into how those fees are calculated.
ILMA contends that the fees lack a clear connection to the actual cost of running recycling programs in Colorado. The association also challenges a provision that prevents companies from disclosing recycling-related costs to customers, arguing that it restricts pricing transparency and communication.
Two organizations – the Lubricants Packaging Management Association and the Circular Action Alliance – are responsible for administering the program. These groups set and collect fees while managing recycling operations, yet operate with limited government oversight, according to ILMA.
The complaint further notes that one of the organizations is led by four large multinational oil companies that directly compete with independent lubricant manufacturers, raising concerns about potential conflicts of interest.
ILMA is asking the court to declare the current implementation of the law unlawful and to block enforcement against its members under the existing framework.
A spokesperson for the Colorado Department of Public Health and Environment told Lube Report the CDPHE don’t comment on pending litigation.
“This is an ongoing situation, and we are addressing it with our partners at the Colorado Attorney General’s Office,” he said.