Keurig made “inaccurate statements” about the recyclability of its single-use coffee pods, according to the Securities and Exchange Commission (SEC). The company agreed to a cease and desist order and pay a $1.5 million civil penalty to settle the charges.
Corporate recycling claims can be misleading
This is a useful reminder that many company recycling claims can be misleading. Some types of plastic are more difficult to recycle than others. Even if an item is said to be recyclable, it may end up in the trash if the type of plastic is not accepted by a municipal recycling program.
The charges against Keurig Dr Pepper Inc. comes from its 2019 and 2020 annual reports, which say the company has tested and “prove(d) that (K-Cup pods) can be effectively recycled.” But the company failed to disclose information about key challenges in recycling the pods, the SEC said in its announcement this week:
Keurig did not disclose that two of the largest recycling companies in the United States expressed significant concerns to Keurig about the commercial viability of curbside recycling of K-Cup pods at the time and indicated that they do not currently intend to accept them for recycling. In fiscal year 2019, sales of K-Cup pods comprised a large percentage of Keurig’s coffee systems business segment’s net sales, and research previously conducted by a Keurig subsidiary indicated that environmental concerns are an important factor considered by certain consumers, among others, when deciding whether to purchase a Keurig brewing system.
The company is neither confirming nor denying any wrongdoing by agreeing to pay the settlement, the SEC said. As of Friday morning, Keurig’s website still says its K-Cup pods have been recyclable since the end of 2020. Before 2020, many of the pods were made with No. 7 plastic, which is considered a “catch-all” designation for difficult to use. -recycle materials, according to Consumer Reports.
Now Keurig says the pods are made with No. 5 plastic or polypropylene, which is also commonly used for yogurt containers and straws. It is still considered more difficult to recycle than Plastic No. 1, or PET, which is used in water and other beverage bottles.
“We are working with individual municipalities and recycling operators to help increase explicit acceptance of K-Cup pods where they already accept polypropylene,” said Laren Marra, director of corporate communications at Keurig Dr Pepper, in an email statement. Regarding the SEC charges, Marren wrote, “We are pleased to have reached an agreement that fully resolves this matter.”
Update September 13th: This post has been updated with a response from Keurig Dr. Pepper.
