California regulators and advocacy groups are filing a surge of Proposition 65 Notices of Violation (NOVs) against major retailers and restaurants over Bisphenol S (BPS) in receipts, stickers, and thermal labels. More than 260 companies including Walmart, McDonald’s, Subway, ULTA, and Wells Fargo are now under scrutiny. While enforcement is centered in California, the implications extend nationwide for any business that uses thermal paper.
What is an NOV under Prop 65?
A Notice of Violation (NOV) is the first step in California’s Prop 65 enforcement process. Advocacy groups or private enforcers must serve an NOV before filing a lawsuit, giving the business 60 days to resolve the alleged violation. If not addressed, the case may proceed to litigation, where penalties can reach $2,500 per violation per day.
What is Proposition 65 and why are receipts now under fire?
Proposition 65 (the Safe Drinking Water and Toxic Enforcement Act of 1986) requires businesses to provide warnings before exposing individuals to chemicals known to cause cancer, birth defects, or reproductive harm.
BPS, a chemical cousin of BPA, was added to the Prop 65 list in 2023. Studies show BPS can be absorbed through skin within seconds of handling a receipt. Because thermal paper is widely used for sales slips, UPC stickers, and shipping labels, retailers across industries are now exposed to Prop 65 liability.
What’s happening with BPS enforcement in California?
In 2024, the Center for Environmental Health (CEH) began testing receipts and found elevated BPS levels at dozens of businesses. CEH has since filed notices of violation (NOVs) against over 260 companies, a number that continues to grow.
According to CEH’s findings, touching a single BPS-containing receipt for just 10 seconds can exceed California’s “safe harbor” exposure level, triggering Prop 65 warning requirements.
Which retailers and restaurants are named in the lawsuits?
The scope of enforcement is sweeping. NOVs have been filed against companies across retail, food service, banking, and energy. Examples include:
- Retailers: Walmart, Nordstrom Rack, Dollar Tree, Staples, ULTA, Victoria’s Secret, Ross
- Food chains: McDonald’s, Burger King, Taco Bell, Subway, Olive Garden, Red Lobster
- Service & financial: Wells Fargo, JCPenney, FedEx Office, Exxon, Shell
This mix of big-box stores, restaurants, apparel brands, and even banks shows how broad the risk is for any business issuing receipts or using thermal labels.
Here’s a breakdown of the major retail companies who received a Notice of Violation for BPS in Receipt Paper:
- Target (Label) – Target Corporation
- Walmart – Walmart Inc.
- Costco Wholesale Corp. – Costco Wholesale
- Ross Stores, Inc. – Ross Dress for Less
- TJX Companies (HomeGoods/TJX, TJX/Marshall’s, TJX/Danskin) – Marshalls, TJ Maxx, HomeGoods, Danskin products
- Nordstrom – Nordstrom department stores
- Saks & Company/Off 5th – Saks Fifth Avenue, Saks OFF 5TH
- JCPenney (Penney Opco LLC) – JCPenney
- Macy’s Inc. – (if listed, but I didn’t see in your excerpt — double check file)
- Urban Outfitters – Urban Outfitters
- Anthropologie, Free People (Urban Outfitters subsidiaries)
- Levi Strauss – Levi’s retail stores
- American Eagle – American Eagle Outfitters, Aerie
- Abercrombie & Fitch – Abercrombie, Hollister
- Gap Inc. (The Gap) – Gap, Old Navy, Banana Republic, Athleta
- Victoria’s Secret Stores – Victoria’s Secret, PINK
- Bath & Body Works – Bath & Body Works
- Lowe’s Home Centers – Lowe’s
- Ace Hardware Corp. – Ace Hardware
- Office Depot – Office Depot, OfficeMax
- Staples, Inc. – Staples
- GameStop (Corp. & Inc.) – GameStop
- Build-A-Bear – Build-A-Bear Workshop
- Zumiez – Zumiez
- Tilly’s – Tillys
- Cotton On – Cotton On retail stores
- Princess Polly – Princess Polly fashion retailer
- Steve Madden – Steve Madden retail
- Calvin Klein – Calvin Klein retail stores (PVH Corp.)
- Tommy Hilfiger – Tommy Hilfiger (PVH Corp.)
- Kendra Scott – Kendra Scott jewelry stores
- Pandora Jewelry – Pandora
- L’Occitane – L’Occitane en Provence
- Kiehl’s/L’Oreal – Kiehl’s stores
- Ulta Beauty / Ulta Salon – Ulta Beauty
- Sephora (if listed) – (not in excerpt, check file)
- Apple, Inc. – Apple retail stores
- Verve LLC – (retail fashion)
- Forever 21 (F21 Opco) – Forever 21
- Claire’s Stores – Claire’s, Icing
- Chanel – Chanel boutiques
- Estee Lauder (MAC, Aveda) – MAC Cosmetics, Aveda retail
- Lush Fresh Handmade Cosmetics – Lush
- Allbirds – Allbirds shoes & apparel
- Dr. Martens Airwair – Dr. Martens footwear stores
- Columbia Sportswear – Columbia retail stores
- Skechers, Inc. – Skechers stores
- PacSun (Pacific Sunwear) – PacSun
- Hot Topic – Hot Topic
- Torrid Holdings – Torrid
- Princess Polly/Brands Holding – Princess Polly (duplicate listing)
- Sports Treasures – sports memorabilia retail
- Phoenix Retail / Chrono Tots / Vana, Inc. – small retail entities
- Sugarfina USA – Sugarfina candy boutiques
What does this mean for businesses outside California?
Although Prop 65 is a California law, national and global retailers must pay attention:
- Multi-state operations often use the same receipt and label suppliers across all locations.
- Reputation risks don’t stop at the California border, consumers in other states are reading headlines about “toxic receipts.”
- Future litigation may expand to consumer class actions or state attorneys general outside California.
In short, California may be the enforcement starting point, but national compliance strategies are increasingly necessary.
What steps should companies take now?
To minimize legal and reputational exposure, businesses should:
- Audit suppliers – Confirm whether receipt and label stock contains BPS or BPA.
- Review Prop 65 warnings – Ensure proper signage and disclosures where required.
- Explore safer alternatives – Many vendors now offer phenol-free thermal paper.
- Train staff – Employees handling receipts regularly may face higher exposure.
For franchise systems in particular, these issues raise unique challenges, since franchisors and franchisees can both face liability. Our recent insights on franchise liability under Prop 65 explain how these dual risks play out in practice.
FAQs
What is Bisphenol S (BPS)?
BPS is a chemical used in thermal paper as a heat-activated developer. Like BPA, it disrupts hormones and has been linked to reproductive and developmental health risks.
How do I know if my receipts contain BPS?
You must confirm with your paper supplier or through independent testing. Many vendors now advertise “phenol-free” thermal paper as safer alternatives.
Are small businesses at risk too?
Yes. Prop 65 enforcement applies to any business in California with 10 or more employees. Notices of violation (NOVs) have included both national brands and smaller operators.
Do consumers need to worry about touching receipts?
Regulators say repeated exposure is the concern. While handling an occasional receipt is unlikely to cause harm, employees and frequent customers may face higher risks.
What happens if a business is found in violation?
Penalties can include costly settlements, attorney’s fees, and mandatory reformulation or warning programs. Many companies choose to settle rather than litigate once an NOV is filed.
Final Takeaway
California’s Prop 65 enforcement against BPS in receipts is accelerating and now impacts over 260 companies, including many household names. For businesses, the message is clear: thermal paper compliance is no longer optional. Proactive supplier audits, updated warnings, and safer material choices can help avoid costly legal action and protect consumer trust.
Juris Law Group regularly advises retailers, franchisors, and manufacturers on Prop 65 compliance strategies.
