(Ottawa) Keurig Canada will pay a $ 3 million fine for making false environmental claims that its single-use K-Cup pods are recyclable. An agreement has been reached with the Competition Bureau.
In a statement released Thursday, the Bureau said the company had accepted the terms of the deal, which includes the fine, a donation of $ 800,000 to an environmental charity and $ 85,000 to cover the costs of investigation.
Keurig also reached an agreement to settle class action on the same issue in the United States last month, but details have not yet been released.
The company was investigated because its claims gave the impression that consumers can prepare the capsules for recycling by removing the seal and emptying the coffee grounds. However, outside of British Columbia and Quebec, K-Cups are not widely accepted by municipal recycling programs today. Additional steps are required to recycle capsules in most municipalities.
In addition to financial penalties, Keurig must change the indications on its packaging as well as publish corrective notices on its websites, in social media, in national and local news media, on the packaging of any new brewer. and by email to its subscribers.
“It is illegal in Canada to portray products or services as having more environmental benefits than they actually have,” said Competition Commissioner Matthew Boswell. False or misleading claims by companies to promote greener products hurt consumers, who are unable to make informed purchasing decisions, and hurt competition and the businesses that actually offer products. products with a lower environmental impact. ”
Cynthia Shanks, senior director of communications and sustainability at Keurig Canada, said in an emailed statement that three years ago, Keurig changed its capsules to use the type of plastic most commonly accepted by health programs. Canadian recycling. However, many of them still do not accept K-Cups.
“As we continue to work with municipalities and the recycling industry to increase acceptance of K-Cup recycling, we have evolved our communications with consumers to let them know that the pods are recyclable in some communities and remind them of the appropriate steps to recycle them ”, specifies Mme Shanks.
“The agreement with the Competition Bureau of Canada will further improve our communications, reminding consumers to check if K-Cups are accepted in their municipal recycling program and, if so, any additional steps that may be necessary. to prepare the capsules for recycling. ”
The Competition Act prohibits companies from making false or misleading representations about a product or service to promote their business interests. Five years ago, the Competition Bureau warned companies that misleading environmental claims are illegal in Canada.
“The Competition Act prohibits environmental claims that are vague, imprecise, incomplete or irrelevant, and unsupportable by verifiable test methods,” the 2017 statement said.