Keurig settles for $1.5 million with SEC over capsule recycling statements

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

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

The SEC found that by 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 Keurig spokesman, who would not admit or deny the SEC’s findings, said the company is pleased to have resolved the issue and that its K-Cups are made from a recyclable plastic that is widely accepted in America’s recycling systems north.

“We continue to encourage consumers to check with their local recycling program to verify acceptance of the pods, as they are not recycled in many communities,” the spokesperson said.