The U.S. Securities and Exchange Commission announced that it fined Keurig Dr. Pepper $1.5 million after finding the company hid crucial information about its popular K-Cup single-use coffee pods, making its recyclability claims inaccurate.
In September, the SEC detailed how Keurig marketed its pods — made from polypropylene No. 5 plastic — as recyclable, with company research in 2016 finding that consumers considered environmental impact when deciding whether to purchase the brand's brewing system.
However, the brand failed to mention that two major recycling companies in the United States — handling one-third of all operations — told Keurig that they had problems recycling its pods. When Keurig filed with the SEC in 2020, it wrote: "We have conducted extensive testing with municipal recycling facilities to validate that [pods] can be effectively recycled."
It doubled down on those claims the following year without disclosing the negative feedback, also telling the SEC that it had dedicated $10 million to improve polypropylene recycling. Ultimately, after its investigation, the SEC told Keurig to pay $1.5 million within 14 days of its order.
"Public companies must ensure that the reports they file with the SEC are complete and accurate," SEC associate director John T. Dugan told the New York Times, which noted that Keurig has agreed to pay the fine.
For its part, Keurig said it is "pleased to have reached an agreement that fully resolves this matter,"...
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