Keurig to pay $1.5M settlement over coffee pod recycling claims

Keurig Dr Pepper Inc., has agreed to a $1.5 million settlement following allegations that it made misleading claims regarding the recyclability of its K-Cup single-use coffee pods. This settlement was announced by the U.S. Securities and Exchange Commission (SEC).

According to the SEC, Keurig's annual reports for the fiscal years 2019 and 2020 included statements suggesting that its K-Cup pods had been validated as recyclable through testing with recycling facilities. However, the SEC noted that Keurig did not disclose that two of the largest recycling companies in the United States had raised substantial concerns about the feasibility of recycling the pods through curbside programmes and had no plans to accept the pods for recycling at that time.

Without admitting or denying the SEC's findings, Keurig has consented to a cease-and-desist order and will pay a civil penalty of $1.5 million.

In a statement issued via email, Keurig Dr Pepper, headquartered in Burlington, expressed satisfaction in resolving the matter.

The company said: Our K-Cup pods are made from recyclable polypropylene plastic (also known as #5 plastic), which is widely accepted in curbside recycling systems across North America. We continue to encourage consumers to check with their local recycling program to verify acceptance of pods, as they are not recycled in many communities. We remain committed to a better, more standardized U.S. recycling system for all packaging materials through KDP actions, collaboration and smart policy solutions.