Keurig Agrees $1.5M SEC Fine Over Pod Recyclability Statements

Keurig Dr Pepper Inc. agreed to pay a $1.5 million fine to settle U.S. Securities and Exchange Commission charges that the beverage company made inaccurate statements regarding the recyclability of its K-Cup pods, the regulator said on Tuesday.

Keurig in 2019 and 2020 said testing showed its K-Cup pods can be “effectively recycled,” even though two of the largest U.S. recycling companies had doubts about the commercial feasibility of recycling them and did not intend to accept them, the SEC said in a statement. Keurig did not disclose to investors the negative feedback from the recycling firms.

The SEC found that with the omission, Keurig violated key provisions of securities laws designed to protect investors. In addition to the civil penalty, the company agreed to a cease-and-desist order, the regulator said.

A spokesperson for Keurig, which did not admit or deny the SEC’s findings, said the company is pleased to have resolved the matter and its K-Cup pods are made from a recyclable plastic that is widely accepted at curbside recycling systems across North America.

“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,” the spokesperson said.