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Summary
The U.S. Securities and Exchange Commission (SEC) has charged Keurig Dr Pepper Inc. for misleading claims that its coffee pods are recyclable. Despite stating that its K-Cup pods could be recycled, Keurig did not disclose concerns from major recycling companies regarding the feasibility of recycling these pods. To settle the charges, Keurig will pay a $1.5 million civil penalty without admitting or denying the findings.
Keurig Dr Pepper Inc. had annual net income of $2.18B in 2023.
Highlights -♻️
- SEC charges Keurig over recycling claims.
- Keurig agrees to pay $1.5 million penalty.
- Claims made in fiscal reports for 2019 and 2020.
- Major recyclers expressed concerns about K-Cup pods.
- Company aimed to enhance environmental appeal to consumers.
The U.S. Securities and Exchange Commission (SEC) announced that it has charged Keurig Dr Pepper Inc. over claims by the company that its coffee pods could be recycled, despite not being accepted by major U.S. recycling companies.
Alongside the announcement, the SEC said that Keurig has agreed to pay a civil penalty of $1.5 million to settle the charges, without admitting or denying the Commission’s findings.
According to the SEC, Keurig had stated in its fiscal year 2019 and 2020 annual reports that testing with recycling facilities indicated that its K-Cup coffee pods “can be effectively recycled,” although the Commission said that the company failed to disclose that two of the largest U.S. recycling companies “expressed significant concerns” to the company at the time about the commercial feasibility of curbside recycling of the pods, and had indicated to Keurig that they did not intend to accept the pods for recycling.
