Arbitrage Blog

Read the latest blog post!


California Why Do you Hate Paper?

Written by Arbitrage2023-03-15 00:00:00

Arbitrage Blog Image

Something about California and its attempts to be a "greener" state is always interesting to watch, especially since some of those efforts seem to backfire royally (re: the California electrical grid not being able to handle seasonal shifts and powering more than 100,000 electric cars). This time, it's making sure that customers are always given the option to avoid receiving a paper receipt.

Allegedly, paper receipts are harmful to the environment and humans. In terms of the cost of creation, this makes sense; but as far as we know, it's more the plastics and non-biodegradable materials that are having a larger impact on the environment and therefore human life as well. In case you were not aware, paper receipts are in fact paper based-they start off as wood pulp that is then processed and combined with a primer that gives it the waxy sheen that we're used to seeing. Receipt paper is typically thermal paper, and you can tell whether or not that is so by scratching it. If you see a black mark where you were scratching the surface of the paper, it is likely thermal paper.

According to Green America, it is estimated that millions of trees and billions of gallons or water are used annually to produce paper receipts in the U.S. We are sure there is some level of waste and carbon footprint as well involved in this process, so in the long run, it may be good to see a decrease in demand (and then supply) for paper receipts. To our knowledge, this bill has not been passed yet, but its origin and contents are not entirely clear. Other news outlets have reported the "Skip the Slip" bill as being a part of Assembly Bill (AB) 161, but AB 161 appears to be related to the 2022-2022 budget and not the 2023-2024 budget. Either way, it has been reported that businesses could be fined up to $300 if they continue to pass out paper receipts. To be clear, companies could be fined $25 per day if they do not comply and that $25 caps at $300 per year.

At the level it is now, the bill may or may not have an impact on companies that print receipts, especially larger companies like CVS that are notorious for having excessively long receipts. In the same respect, it would not be too far of a leap for a bill fashioned in a similar way concerning paper money and encouraging the use of digital currency. For now, we will have to wait and see how the "Skip the Slip" bill plays out in California and if it will be adopted by other states.

Don't miss our podcast at https://www.arbitragetrade.com/podcasts/

Like this article? Share it with a friend!