Recently there has been a significant increase in administrative enforcement proceedings, warning letters and motions to certify class actions in relation to the Processing of Packaging Law. The law, enacted back in 2011, prescribes various arrangements regarding the handling of packaging waste and imposes various obligations towards manufacturers and importers. Its goals are to reduce the volume of packaging waste, prevent packaging waste from ending up in landfills, and encourage recycling and reuse.
Various manufacturers and importers who must recycle packaging materials pursuant to the law have recently received warning letters and/or had motions to certify class actions filed against them for violating it. Since, similarly to class action motions for violations of accessibility laws, such motions are exempt from fees, we can assume we will continue to see a significant increase in the number of motions filed in this regard.
Key Provisions of the Processing of Packaging Law
The law imposes an obligation on manufacturers (including manufacturers through subcontractors) and importers of packaged products or packaging materials to recycle packaging waste of their manufactured or imported products or packaging materials in compliance with recycling targets. In this regard, the law defines “packaging” as any object and material that is used or intended to be used as a wrapper or receptacle in order to preserve, display, carry, or transport a product, which fulfills the following conditions:
- The packaging is not an integral part of the product and is not essential for use of the product.
- The packaging is one of the following:
- Sales packaging – packaging intended to provide product information and promote sales to end-users or consumers at points-of-sale.
- Display packaging – wrapping or packaging encasing a quantity of identical products at points-of-sale, enabling the removal of individual products without affecting the product.
- Bulk shipping packaging – packaging designed to enable the handling and transport of a volume of individual products for sale or a volume of display packages, as an alternative to manual handling and in order to prevent damage during transport.
The inclusive packaging recycling target is currently 60% of all types of packaging materials. The law also defines a recycling target for each type of packaging material: glass, paper, and cardboard – 60%; metal – 50%; plastic – 22.5%; and wood – 15%.
To comply with the law, manufacturers and importers must engage with a company licensed by the Ministry of Environmental Protection to act as a “recognized entity” for package recycling. This recognized entity will take the actions required to fulfill the manufacturers’ and importers’ aforesaid recycling obligations. Failure to engage with a recognized entity constitutes a violation of the law and could trigger fines.
Reporting Obligation
The law also obligates manufacturers and importers to submit semi-annual and annual reports of the packaged products or packaging materials they sold in Israel and their weight, according to the requirements specified in the law and the Ministry of Environmental Protection’s directives.
If the weight of a manufacturer’s or importer’s packaging waste is less than 1,000 kg per annum, it may be exempt from the obligation to engage with a recognized entity and from the reporting obligation, provided it notifies the Director General of the Ministry of Environmental Protection.
Minimizing Exposure
Since the law applies across all industries, and even for an exemption an action is required we recommend that importers and manufacturers re-examine the law’s applicability over their activities and ensure they are complying with all its requirements. Re-examining compliance can help companies minimize their exposure to administrative enforcement proceedings and/or class actions in this regard, even if they have not achieved their recycling targets.
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