California is moving forward with the implementation of the Textile Recovery Act. The implementation of the Extended Producer Responsibility (EPR) law, passed in 2024, has already completed its first phase. By July 1st, 2026, fashion companies in the state were required to register with Landbell USA, which was selected by CalRecycle as the program’s sole Producer Responsibility Organization (PRO).
Progress on this law continues despite the legal challenge filed by the American Apparel and Footwear Association (AAFA) against the selection of Landbell USA in March 2026. The case remains pending in court, and a hearing is not scheduled until March 12th, 2027.
The AAFA, which represents more than 1,100 U.S. apparel and footwear brands, retailers, and manufacturers, alleged legal violations and procedural flaws in CalRecycle’s selection of Landbell USA as the program’s PRO. The organization argued in the lawsuit that Landbell USA is not a nonprofit organization but rather part of a for-profit foreign group based in Germany, that it was not founded by producers, and that it lacks a diverse board of directors and adequate financial controls—all of which are requirements established by law for serving as a PRO.