US clampdown on sustainability alliances spreads to plastics
Officials from across the US have written to nearly 80 companies belonging to anti-pollution coalitions to warn them they might be flouting competition law.
In the latest clampdown on corporate sustainability initiatives, 10 state attorneys general signed a letter on February 10th to members of the US Plastics Pact, the Consumer Goods Forum and the Sustainable Packaging Coalition.
They stated that attempts to “pressure companies into artificially changing the output and quality of their goods and services in a way that normal market forces would not otherwise bring about” was potentially illegal.
This includes coordinated efforts to cut down on the use of plastic, or find alternative materials.
“These advocacy organisations want to remove products from the market without considering consumer demand, product effectiveness, or the cost and impact on consumers of a replacement product,” claimed the attorneys general, who represent Florida, Georgia, Nebraska, Iowa, North Dakota, Kansas, South Dakota, Montana, Texas and West Virginia.
They added that the initiatives rely on collective action and “have all the trappings of the sort of ‘adverse, anti-competitive effects’ that the antitrust laws seek to prevent”.
Those laws include the Sherman Antitrust Act and state and federal consumer protection laws.
“Accordingly, you should reasonably anticipate that the undersigned States may seek additional information regarding your organisation’s participation in these initiatives, including through formal investigative demands, subpoenas, or other compulsory legal process,” the letters warn.
In the meantime, the attorneys general request the companies “explain in detail the legal basis justifying your belief that your membership or coordination with any plastics advocacy organization is not violating antitrust or consumer protection laws”.
The letters point out that, during a similar campaign to break up net-zero initiatives, many entities “elected to withdraw” from those groups, “obviating the need for further enforcement action”.
Indeed, global climate alliances for the insurance, banking and investment sectors have all either folded or reduced their requirements as a result of attacks by Republican officials in recent years.