Retail, apparel, and footwear associations sign MOU to establish PRO for textiles in California

The California Retailers Association, the American Apparel & Footwear Association, and the National Retail Federation have announced the signing of a Memorandum of Understanding (MOU) to establish an independent, 501(c)(3) Producer Responsibility Organization (PRO) aimed at reducing textile waste. This new organization will ensure that textiles are diverted from landfills through collection, repair, reuse, and recycling efforts in accordance with California’s Extended Producer Responsibility (EPR) law for textiles, which was signed into law in 2024.

California’s SB 707 mandates that textile producers and importers take responsibility for managing the end-of-life of their products. This includes joining and funding a PRO, which will develop and implement strategies for the collection, transportation, repair, recycling, and proper management of textile products. The California Department of Resources Recycling and Recovery must approve the PRO by March 1, 2026, after the application deadline on January 1, 2026.

The three associations collectively represent thousands of businesses and potential producers and are actively engaging obligated producers to lead the charge for the new organization. The MOU formalizes their intent to:

• Establish an independent, producer-led PRO to ensure compliance with SB 707 for all textile producers.
• Collaborate across the textile value chain by involving manufacturers, brands, retailers, collectors, sorters, recyclers, and repair businesses.
• Prepare the PRO to develop and implement a stewardship program that meets the law’s requirements and strengthens the infrastructure for textile collection, repair, reuse, and recycling.

Statements from Association Leaders

California’s SB 707 positions our state as a national leader in responsible textile management. The California Retailers Association is proud to lead the charge for environmental sustainability. We’re committed to implementing this law and establishing a PRO that will unite and empower the wide range of producers selling textiles in California.

Rachel Michelin, President of the California Retailers Association.

This partnership signals our industry’s commitment to collaborating on a circular transition. By bringing together diverse stakeholders across the industry supply chain, we’re launching an inclusive organization that will establish California as the standard for similar efforts nationwide.

Steve Lamar, President & CEO of the American Apparel & Footwear Association

The National Retail Federation shares a strong commitment to ensuring SB 707’s success. Our members bring significant experience in PRO-building, EPR compliance, and implementation, and we’re excited to collaborate on an organization that supports the producer community both now and in the future.

Stephanie Martz, Chief Administrative Officer and Legal Counsel for the National Retail Federation.

The associations are now working to form the independent, 501(c)(3) PRO to meet all requirements under SB 707 and prepare for the application process. The PRO is expected to begin operating in early 2026, with its initial focus on registering producers by July 1, 2026. It will also conduct a statewide needs assessment to determine the necessary steps and investment needed to fulfill the law’s requirements.