Keurig Dr Pepper: Million-Dollar Fine for Misleading Claims About Recyclability

Keurig Dr Pepper has agreed to pay a fine of $1.5 million after the U.S. Securities and Exchange Commission (SEC) accused the company of providing inaccurate information about the recyclability of its K-Cup pods. This concession is intended to settle the allegations, the regulatory authority announced on Tuesday. In the fiscal years 2019 and 2020, Keurig claimed that tests had confirmed that K-Cup pods could be "effectively recycled." However, the company failed to disclose that two of the largest recycling companies in the U.S. stated they would not accept them as it was not economically feasible, according to the SEC in its statement. Representatives from Keurig, who neither confirmed nor denied the SEC's findings, did not directly comment on the allegations. The SEC determined that Keurig's omission violated essential provisions of securities laws aimed at protecting investors. In addition to the civil penalty, the company has also agreed to a cease-and-desist order, the authority said.