The dispute goes to the heart of how the first US textile EPR system will be governed: by a producer-built body shaped by statute, or by a regulator-approved compliance operator the industry says does not meet the law’s design tests.
The American Apparel & Footwear Association has filed a legal challenge against CalRecycle over the agency’s selection of Landbell USA as the producer responsibility organization for California’s Responsible Textile Recovery Act of 2024 (SB 707). The challenge marks an early and significant test for the rollout of the first textile-specific extended producer responsibility framework in the United States.
CalRecycle formally approved Landbell USA on February 27, 2026, and producers of covered apparel and textile articles are required to join the approved PRO by July 1, 2026. Under SB 707, producers must form and join a PRO, while CalRecycle is responsible for approving the organization and overseeing implementation of the law.
AAFA’s objection is narrower than a general attack on textile EPR. The association says the selected PRO fails to satisfy the statutory criteria that industry groups had pushed to include in the law, including that the PRO be producer-formed, have a diverse board reflecting the breadth of the industry, operate as a 501(c)(3) and maintain robust financial controls. According to reporting on the complaint, AAFA argues CalRecycle’s chosen organization does not meet those requirements and is therefore inconsistent with the law’s intended governance structure.
The dispute also exposes a deeper industry divide. In late 2025, AAFA had publicly backed the Textile Renewal Alliance, a prospective PRO formed to support compliance under SB 707. CalRecycle’s decision to approve Landbell instead has now turned that competition into litigation.
For brands, retailers and compliance teams, the case matters beyond California. Textile EPR is moving from policy theory into operational reality, and this lawsuit will help determine whether governance of these systems remains regulator-led, producer-led or some hybrid of the two.
