AAFA Continues Challenge Against SB-707 PRO Selection Despite Injunction Denial

WASHINGTON, D.C. — September 18, 2026 — Following the Sacramento Superior Court’s denial of its motion for a preliminary injunction, the American Apparel & Footwear Association (AAFA) is announcing that it will continue to pursue its complaint in American Apparel & Footwear Association, Inc. v. California Department of Resources Recycling and Recovery, to ensure the statutory requirements of California SB-707 are met.

A statement from AAFA President and CEO, Steve Lamar:

Steve Lamar, American Apparel and Footwear Association (AAFA)

“We are disappointed by the court’s decision to deny our motion for a preliminary injunction, allowing the producer responsibility program to proceed through critical early implementation steps without first meeting the statutory requirements established in law. AAFA invested significant time and expertise in helping shape SB-707 into a practical and implementable framework designed to accelerate the development of a circular textile system in California through a cost-effective and collaborative approach.

That goal remains our priority. To that end, we will continue to pursue our complaint and advocate for a Producer Responsibility Organization (PRO) that complies with the law and reflects the full breadth of the industry it serves. Specifically, the law requires a PRO that is: (1) formed and governed by producers, (2) led by a diverse Board of Directors that represents the full scale and scope of the textile and apparel industry, (3) organized as a 501(c)(3) nonprofit without profit motivation, and (4) supported by strong financial oversight and controls.

California’s textile circularity goals can only be achieved through a program that is both effective and legally compliant. Regrettably, what we have today is nowhere near that. Instead, CalRecycle chose a for-profit company, which has been allowed to operate under the guise of a 501(c)(3), setting its own budget, setting its own fees, and running a program with unclear industry input or financial oversight. If we get this wrong, not only do we jeopardize the success of California’s textile EPR program; we jeopardize the future of sustainable fashion everywhere. Therefore, we will continue to pursue all efforts, including this litigation to put California’s textile EPR program back on the track it deserves, and which was statutorily required, to achieve success. ”

Posted: September 19, 2026

Source: The American Apparel & Footwear Association (AAFA)

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