Keurig pays SEC fine over its recyclability statements

They say convenience comes at a cost – just ask Keurig. This week, the SEC fined the maker of the oh-so-convenient K-Cup pods $1.5 million for withholding information about its products’ recyclability.

• The fine is related to statements made by Keurig in 2019 and 2020, when the company claimed its K-Cup pods could be "effectively recycled," even though two of the largest US recycling companies had doubts and refused to accept them.
• The SEC accused Keurig of withholding this information from investors in violation of securities law, which requires companies to make accurate disclosures.

This withholding also impacted the company’s sales positively, per the SEC. K-Cup sales made up a significant portion of the company’s coffee sales in 2019 and 2020, and internal company research showed environmental concerns about pod disposal were a significant factor for consumers thinking about buying Keurig machines, the WSJ reports.

• As part of the arrangement, Keurig will pay the fine, but did not formally accept nor decline the SEC’s claims of withholding information.

♻️ Par for the course: Oftentimes, items marked recyclable that end up in the recycling bin aren’t actually recycled. Only an estimated 5% to 6% of used plastics are recycled each year in the US, with the rest ending up in landfills next to your trash ex-boyfriend.