California Proposition 65

April 11, 2025 | Written by GreenSoft Technology, Inc.

New Study Reveals Impact of Prop 65: Product Reformulation and Increased Supply Chain Transparency

A Recent Study Shows How California’s Proposition 65 is Pushing Businesses to Remove Harmful Chemicals  

California’s Safe Drinking Water and Toxic Enforcement Act of 1986 (Proposition 65) is reshaping how businesses handle hazardous chemicals. A recent study published in Environmental Science & Technology reveals how the law is encouraging companies to reformulate products, increasing supply chain transparency, and influencing markets worldwide. 

Reformulation of Products to Eliminate Hazardous Chemicals 

According to the study, Proposition 65 has effectively prompted industries to reformulate products to eliminate Prop 65-listed substances. This shift is largely driven by the requirement to inform consumers about the presence of harmful substances, which can impact a company's reputation and sales.  

Researchers found that businesses are choosing to eliminate Proposition 65-listed chemicals instead of reducing them to below safe harbor levels (i.e., exposure levels that do not require a Prop 65 warning). One manufacturer interviewed for the study stated, “even though there is an allowable level, the burden of litigation [and] the complexity with customers [makes it] really not worth the effort to use them. So typically, what we do is we ban Proposition 65 materials from use.”   

In fact, 81% of interviewed manufacturers said they use the Proposition 65 list as an authoritative list of hazardous chemicals to avoid when formulating products or making purchases from raw material suppliers. 

Enhanced Supply Chain Transparency 

Another key finding is that CA Prop 65 has compelled companies to scrutinize their supply chains more closely. According to the study, 69% of interviewees cited increased supply chain transparency as an impact of Proposition 65. Businesses report increased communication with suppliers to identify and eliminate listed chemicals, leading to greater transparency and control over product ingredients.  

Influence of Prop 65 on Global Markets 

Proposition 65’s reach extends far beyond California, affecting national and global markets, underscoring the state's regulatory influence. The study concluded that large companies with shared supply chains drive industry-wide changes, and businesses often reformulate products universally rather than creating region-specific versions. One interviewed manufacturer stated, “We’re a global company so we take the strictest requirements and apply that to all of our products.”  Additionally, other regulations reference the Proposition 65 chemical list, further amplifying its reach.    

Why Compliance Remains a Challenge 

Despite these positive industry shifts, businesses still face significant challenges achieving compliance with Prop 65. One of the biggest obstacles is obtaining complete and accurate chemical composition data from suppliers.  

Common issues with data collection include:  

• Non-responsive suppliers who do not provide necessary chemical disclosures 

• Incomplete or inaccurate data, requiring verification and follow-up 

• Complex supply chains, where critical chemical data may be missing or difficult to trace 

• Inconsistent interpretations of exposure risks make it difficult to determine when warnings are necessary 

Without accurate information, companies risk non-compliance, legal action, and reputational damage. This is where GreenSoft’s expertise makes a difference.  

 GreenSoft’s Proposition 65 Data Services: A Complete Compliance Solution  

Navigating Proposition 65 data collection can be overwhelming, but GreenSoft provides a streamlined solution. Our Prop 65 Data Services help companies efficiently collect, validate, and manage compliance data, ensuring that your products meet regulatory requirements.  

GreenSoft provides:  

• Comprehensive supplier outreach to obtain chemical data  

• Data validation services to ensure accuracy and completeness 

• Assistance in finding replacement suppliers or alternative materials when compliance risks are identified 

• Ongoing regulation monitoring to keep up with regulatory updates and changes 

By partnering with GreenSoft, companies eliminate uncertainty in their Proposition 65 compliance efforts and gain confidence in their supply chain data. Contact us today to learn how we can support your compliance needs.