Keurig Dr Pepper Inc. will pay $1.5 million to settle charges that it made misrepresentations about the recyclability of its single-serve K-Cup beverage pods, according to the U.S. Securities and Exchange Commission (SEC).
In its annual reports for fiscal years 2019 and 2020, Keurig said its testing with recycling facilities “validated that [les dosettes K-Cup] can be efficiently recycled.”
However, according to the SEC, Keurig failed to disclose that two of the nation’s largest recyclers had expressed significant concerns to the company about the commercial feasibility of recycling K-Cup pods after curbside pickup at that time and indicated that they had no intention of accepting the pods for recycling.
Keurig agreed to a cease and desist order and to pay the civil penalty without admitting or denying the findings, the SEC said.
Keurig Dr Pepper Inc., based in Burlington, Massachusetts, said in an emailed statement that it was pleased to resolve the issue.
The company said its K-Cup pods are made from recyclable polypropylene plastic, also known as No. 5 plastic, “which is widely accepted in curbside recycling systems in North America.”
“We continue to encourage consumers to check with their local recycling program to verify the acceptance of pods, as they are not recycled in many communities,” Keurig added. “We remain committed to building a better, more standardized U.S. recycling system for all packaging materials through the company’s actions, collaboration and smart policy solutions.”
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