Keurig to pay $1.5M to settle SEC charges related to K-Cup pod recyclability statements

The Securities and Exchange Commission says that Keurig Dr. Pepper Inc. will pay $1.5 million to settle charges that it made inaccurate statements about the the recyclability of its K-Cup single use beverage pods

Keurig-SEC (AP)

The Securities and Exchange Commission says that Keurig Dr. Pepper Inc. will pay $1.5 million to settle charges that it made inaccurate statements about the the recyclability of its K-Cup single use beverage pods.

The agency said in its order that in annual reports for fiscal years 2019 and 2020, Keurig stated that its testing with recycling facilities “validate(d) that (K-Cup pods) can be effectively recycled.” But Keurig didn't disclose that two of the country's biggest recycling companies had expressed significant concerns to Keurig about the commercial feasibility of curbside recycling of K-Cup pods at that time and indicated that they did not presently intend to accept the pods for recycling.

The SEC said Tuesday that Keurig agreed to a cease-and-desist order and to pay the civil penalty, without admitting or denying the findings in the agency's order.

Keurig Dr. Pepper, based in Burlington , Massachusetts, said in an emailed statement that it was pleased to reach an agreement that fully resolves the matter.

“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 in a statement. “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.”