Why was K-Cups Coffee Maker Fined $1.5 Mil?

Not everyone likes Keurig K-Cup coffee. The quick-brew may be in millions of offices and company kitchens worldwide, but its detractors argue it’s not “real” coffee!

The debate over taste and quality may be unsettled. What’s not in question any longer? K-Cups are most definitely not recyclable.

K-Cup manufacturer Keurig Dr. Pepper will pay a $1.5 million fine issued by the Securities & Exchange Commission (SEC) for making misleading statements in its 2019 and 2020 annual reports. The company claimed recycling facilities “validate[d] that [K-Cup pods] can be effectively recycled” even though two of the largest recyclers in the U.S. reported that curbside recycling of K-Cups wasn’t feasible, nor were any of their plants recycling K-Cups.

The fine by the SEC follows a $10 million class-action settlement a few years back over the company’s recyclable claims. Consumers and investors possibly poured more money into K-Cup pods because they believed the green hype.

K-Cups are Trash as Far as Recycling Plants are Concerned

Companies need to be very careful about the green or sustainability claims they make about their products and services. “Greenwashing” the public — and investors — can leave a business with egg on its face. Whether it’s an advertisement, marketing language or an annual report to shareholders, as in the case of Keurig Dr. Pepper, honesty is a must.

The K-Cup pod is made from polpypropylene, more commonly known as plastic #5. The recycling market for the most common types of products it’s used to make — disposable cups, margarine tubs, syrup bottles and coffee pods — is limited to nil. Recycling plants in most regions don’t want the stuff because it’s not as profitable as other recyclables.

Using terms like “100% sustainable” can also get companies into trouble. If a public group can show a product is just 80% sustainable it can lead to a lawsuit for the offending business. Good rule of thumb: Refer to the Federal Trade Commission‘s Green Guides for guidelines on how to market and label to the letter of the law.