California shoppers might be getting more than just a receipt at checkout — they may also be exposed to a toxic chemical, according to Proposition 65 (“Prop. 65”) enforcer Center for Environmental Health (CEH) represented by Lexington Law Group.
Prop. 65, officially referred to as the Safe Drinking Water and Toxic Enforcement Act of 1986, requires businesses with 10 or more employees to provide a “clear and reasonable” warning before exposing individuals in California to any listed chemical that may cause cancer or reproductive harm. Potential penalties for failing to comply can be steep — up to $2,500 per day for each violation. Non-compliant businesses may face enforcement actions, penalties, and attorney fees.
On April 11, 2025, the Center for Environmental Health (CEH) issued a Notice of Violation under California’s Prop. 65 to a wide range of major businesses, alleging that their thermal receipt paper contains Bisphenol S (BPS), a chemical known to cause reproductive harm pursuant to Prop. 65.
BPS was officially listed on the Prop. 65 list of chemicals in December of 2023. Generally speaking, once a chemical is listed under Prop. 65, businesses have 12 months from the date of listing to begin providing clear and reasonable warnings before knowingly and intentionally exposing individuals to that chemical.
BPS is commonly used as a coating on thermal paper — the kind you find in receipts. According to CEH, handling these receipts can lead to BPS exposure through skin contact and hand-to-mouth ingestion. Under Prop 65, businesses are required to provide a “clear and reasonable warning” before knowingly exposing consumers to chemicals like BPS. CEH alleges that no such warnings were provided.
There is currently no established safe harbor level for BPS under Prop. 65. Without a defined level, any exposure could potentially require a warning unless an exposure assessment shows it is below a harmful threshold or some other Prop. 65 defense applies. Even then, these matters often boil down to a battle of the experts.
The NOV targets a broad sweep of companies, from fast food chains and coffee shops to retail and financial institutions.
This enforcement action underscores growing Prop. 65 activity about chemical exposure in everyday products — even something as mundane as a receipt.
Now is the time for proactive compliance. Reviewing your warning practices, posting the appropriate warning, and agreements can help mitigate risk. As always, businesses are well-advised to consult with experienced counsel to navigate the evolving Prop. 65 landscape and minimize exposure to litigation and liability.
