Keurig Dr Pepper Inc. will pay $1.5 million to settle charges that the company made false statements about the recyclability of its single-use K-Cup cups, the U.S. Securities and Exchange Commission said.
In annual reports for fiscal years 2019 and 2020, Kuering stated that its testing with recycling facilities “validated that (K-Cup pods) can be effectively recycled.” However, the SEC alleges that Keurig failed to disclose that two of the nation’s largest recycling facilities had expressed significant concerns to the company at the time about the commercial viability of curbside recycling of K-Cup pods and indicated that they did not currently plan to accept the pods for recycling.
According to the SEC, Keurig agreed to a cease and desist order and to pay the civil penalty without admitting or denying the findings.
Keurig Dr Pepper, based in Burlington, Massachusetts, said in an email statement that it was pleased the matter had been resolved.
“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,” the company said. “We continue to encourage consumers to check with their local recycling program to determine if pods will be accepted, 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.”