This study undertook a critical examination of Ontario’s extended producer responsibility scheme for the residential “Blue Box” recycling program, specifically examining the relationship between packaging fee rates and material-specific recycling rates. Using data collected for each of the 23 materials found in the residential recycling program over the past decade, a regression model was developed to gauge what relationship (if any) packaging recycling rates have with fee rates, costs of material management and revenue from the sale of recyclable material. The modeling in this study indicates that packaging fee rates have no effect on packaging recycling rates. Recycling rates were positively correlated with material revenue and negatively correlated with material management costs. There is no evidence that suggests that Ontario’s fee model used to allocate environmental handling fees to individual materials encourages waste diversion or design for the environment. The disconnect in the results and the intended function of packaging fee rates calls into question the appropriateness of Ontario’s fee rate methodology.