(Credit: Pixabay)Keurig Dr Pepper Canada will pay a fine of more than $2.3 million and donate $631,000 to a charitable organization focused on environmental issues as a result of making misleading environmental claims about the recyclability of its products.
Canada’s Competition Bureau found that the company's claims regarding the recyclability of its single-use Keurig K-Cup coffee pods were false or misleading in areas where they are not accepted for recycling. The Bureau says that outside of British Columbia and Quebec, the coffee pods are not widely accepted in municipal recycling programs.
The Competition Bureau also found that Keurig Dr Pepper Canada misrepresented the step needed to prepare the pods for recycling in certain communities.
The company's recyclable claims are made on its website, social media and text and information on the K-Cup pods and packaging. The settlement also covers recyclability claims made on packages of K-Cup pods for brands marketed in partnership with Keurig Dr Pepper Canada.
As part of the settlement, Keurig Dr Pepper Canada will change the information about recyclability on its packaging and publish corrective notices online and with the packaging of new products. Keurig will also be required to enhance its corporate compliance program to help prevent deceptive marketing issues in the future.
In addition to the fine and the donation, the company is responsible for the cost of the Bureau’s $67,000 investigation. The agreement is registered with the Competition Tribunal and is binding for five years.
“Portraying products or services as having more environmental benefits than they truly have is an illegal practice in Canada,” Commissioner of Competition Matthew Boswell says. “False or misleading claims by businesses to promote ‘greener’ products harm consumers who are unable to make informed purchasing decisions, as well as competition and businesses who actually offer products with a lower environmental impact.”
Provisions of the Competition Act in Canada forbids companies from making false or misleading claims about products to promote business interests. The Competition Bureau issued a business alert in 2017 warning companies of issues related to making environmental claims that are misleading or could be misinterpreted.
Keurig Dr Pepper said in late 2020 it made all of its K-Cup pods recyclable. The company is also part of the Polypropylene Recycling Coalition and has made a $10 million commitment to the organization. The company is also a member of the World Wildlife Fund’s ReSource: Plastic program, which has cut more than 71,000 tons of problem plastics.
