A inexperienced tea pod in a Keurig model espresso maker, December 17, 2022.
Gado | Inventory images | Getty Photographs
The Securities and Alternate Fee has charged Keurig Dr Pepper over what the company mentioned have been inaccurate claims made by the corporate concerning the recyclability of its single-use Okay-Cup capsules, the company mentioned Tuesday.
Keurig has agreed to pay a $1.5 million civil penalty with out admitting or denying the company’s findings.
As customers grow to be extra acutely aware of their carbon footprints, questions on Okay-Cups’ environmental influence have dogged Keurig for greater than a decade. The inventor of capsules Atlantic said that he feels dangerous “generally” about making Okay-Cups due to the waste they generate. A 2018 lawsuit over recycling claims resulted in a $10 million class motion settlement. By the tip of 2020, Okay-Cups might be absolutely recyclable, in line with the corporate.
However earlier than the corporate reached that milestone, it was already telling buyers that the capsules could possibly be recycled.
Keurig mentioned in its annual stories for fiscal 2019 and 2020 that testing with recycling amenities discovered that Okay-Cups may be successfully recycled. Nevertheless, the SEC mentioned the corporate didn’t disclose that two of the most important US recyclers had advised Keurig they didn’t intend to simply accept the single-use espresso pods for recycling and had expressed “important considerations” concerning the monetary viability of recycling of the collected Okay-Cups on the curb.
The corporate’s claims could have swayed some customers, boosting gross sales of each Okay-Cups and its brewers. A research beforehand carried out by a Keurig subsidiary discovered that environmental considerations have been a key issue some patrons thought of when buying a Keurig espresso maker, in line with the SEC.
In Keurig’s second fiscal quarter, gross sales of Okay-Cup pods and the corporate’s brewing techniques accounted for practically 1 / 4 of the corporate’s income, in line with an organization submitting.
In an announcement, an organization spokesperson mentioned: “We’re happy to have reached an settlement that absolutely resolves this matter.”
“Our Okay-Cup capsules are made out of recyclable polypropylene plastic (also called #5 plastic), which is extensively accepted in North American curbside recycling techniques,” the spokesperson mentioned. “We proceed to encourage customers to examine with their native recycling program to confirm acceptance of the pods, as they aren’t recycled in lots of communities. We stay dedicated to a greater, extra standardized recycling system for all packaging supplies by means of KDP motion, collaboration and good coverage choices.”
