Words like “recyclable,” “compostable,” “reusable,” and “refillable” appear on thousands of packages across the United States.
But what exactly does a product have to meet before a company can make one of those claims?
A newly introduced federal bill is putting that question back in the spotlight.
The Truth in Labeling Act of 2026 seeks to establish clearer national standards for environmental claims made on packaging and food-service products.
For brands, packaging designers, and label printers, it is another sign that the information printed on a product label is becoming just as important as the way that label looks.
What Is the Truth in Labeling Act?
The proposed legislation focuses on environmental terms commonly found on consumer packaging, including claims such as:
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Recyclable
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Compostable
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Reusable
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Refillable
The goal is to establish clearer standards surrounding when and how environmental claims can be used on packaging.
This is important because businesses selling products across the country can encounter different packaging and labeling requirements as states develop their own environmental regulations.
A more consistent national approach could eventually make it easier for both businesses and consumers to understand what these terms actually mean.
It is important to note that this is proposed legislation and not a new nationwide labeling requirement currently in effect.
Why Is “Recyclable” Becoming Complicated?
At first glance, determining whether something is recyclable seems simple.
In practice, it isn't.
A package might technically be made from a material capable of being recycled, but that doesn't necessarily mean recycling facilities commonly accept or process it.
Recycling programs and available infrastructure can vary considerably from one community to another.
That creates an important question:
When should a company be allowed to call its packaging recyclable?
The discussion surrounding the Truth in Labeling Act is part of a much larger conversation about how environmental claims should be communicated to consumers.
Packaging Claims Are Getting More Attention
Environmental messaging has become increasingly visible on product packaging.
Walk through a grocery store or retail aisle and you'll see packages advertising recycled content, recyclability, compostability, reduced plastic, refill systems, and other sustainability features.
Consumers may consider those statements when deciding between competing products.
That makes accurate and understandable labeling increasingly important.
Companies need to communicate legitimate environmental benefits while avoiding claims that could confuse or mislead customers.
This Could Affect Label Design Too
Changes to packaging requirements don't just affect regulatory and compliance departments.
Eventually, they can affect graphic designers, packaging designers, and label printers as well.
If environmental information becomes more standardized, brands could need to reserve additional space on their packaging for specific wording, symbols, disposal instructions, or other information.
For small packages, finding that space can already be challenging.
A typical product label may need room for:
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Product name
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Company branding
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Ingredients
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Net weight or quantity
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Nutrition information
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Warnings
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UPC or QR codes
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Contact information
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Recycling or disposal information
Adding more information makes good label design even more important.
The Bigger Trend: Labels Are Carrying More Information
This story is part of a broader change happening throughout the packaging industry.
Labels aren't necessarily getting simpler.
They're being asked to communicate more.
Consumers want greater transparency. Retailers want better product information. Regulators want clearer claims. Brands want stronger storytelling.
Meanwhile, the physical package isn't necessarily getting any larger.
The challenge is fitting all of that information onto a label while keeping the design clean, attractive, and easy to understand.
What Should Businesses Do Right Now?
For most businesses, there is no reason to redesign a product label simply because new legislation has been proposed.
Proposed legislation can change substantially during the legislative process and may or may not ultimately become law.
However, businesses that make environmental claims on their packaging should continue paying attention to developments in this area.
Terms such as “recyclable,” “compostable,” “reusable,” and “refillable” increasingly carry both consumer expectations and regulatory considerations.
Before making environmental claims on packaging, businesses should make sure those claims are accurate and appropriate for their products and markets.
Label Design Is About More Than Appearance
A great product label needs to accomplish several things at the same time.
It should attract attention, represent the brand, communicate important information clearly, and leave enough room for information the business may be required to provide.
As packaging standards and consumer expectations continue to evolve, those considerations are likely to become even more important.
At Econo Print Labels, we'll continue following developments throughout the labeling and packaging industry and sharing news that could affect businesses and their product packaging.
Sources
Sustainable Packaging Coalition
Packaging Policy News — August 25, 2026
U.S. Congress
Truth in Labeling Act of 2026
This article is provided for general informational purposes and should not be considered legal or regulatory advice.