Keurig pays hefty fine for false and misleading claims about K-CUP recycling

The Competition Bureau says Keurig Canada will pay a $ 3 million fine for making false or misleading claims that its single-use K-Cup pods can be recycled.

In a statement Thursday, the bureau says the company voluntarily reached a settlement that will include the fine plus a donation of $ 800,000 to an environmental charity and $ 85,000 in Competition Office expenses for the case.

Keurig reportedly reached an agreement to settle a class action lawsuit in the United States on the same issue last month, although the details of that agreement are not yet public.

The company was investigated by the Competition Office for claims that its single-use plastic beverage capsules could be recycled if consumers removed the metal cap and emptied any contents such as coffee grounds.

But the Bureau said that K-Cups are not widely accepted for recycling in any province except Quebec and British Columbia, and those instructions are not enough for many cities that might accept them in a recycling program.

In addition to financial penalties, Keurig Canada has to change its packaging, post notices about the changes on its local and national websites, social media and media, as well as include the information on the packaging of new brewing machines. Keurig and send an email to subscribers.

“Representing products or services as having more environmental benefits than they actually do is an illegal practice in Canada,” Competition Commissioner Matthew Boswell said in a statement.

What people are reading

“False or misleading claims by companies to promote ‘greener’ products hurt consumers who cannot make informed purchasing decisions, as well as competitors and companies that actually offer products with less environmental impact.”

Cynthia Shanks, Keurig Canada’s senior director of communications and sustainability, said in an emailed statement that three years ago, Keurig switched its capsules to use the type of plastic most commonly accepted by Canadian recycling programs.

But he said that many still do not accept K-Cups.

“As we continue to work with municipalities and the recycling industry to increase acceptance of K-Cup capsule recycling, we have evolved our communications with consumers to share that capsules are recyclable in select communities and remind them of the appropriate steps to recycle. “. Shanks said.

“The agreement with the Canadian Competition Office will further enhance our communications, reminding consumers to verify if K-Cup capsules are accepted into their municipality’s recycling program and, if so, any additional steps that may be required. necessary to prepare the capsules for recycling. “

The Competition Law prohibits companies from making false or misleading claims about their products, including environmental claims. Five years ago, the Competition Bureau issued a warning to companies that “green washing” of their products is illegal in Canada.

“The Competition Law targets environmental claims that are vague, unspecific, incomplete or irrelevant and that cannot be supported through verifiable testing methods,” the 2017 statement reads.

This Canadian Press report was first published on January 6, 2022.