WASHINGTON, Sept 10 (Askume) – Keurig Dr Pepper Inc (KDP.O) has agreed to pay a $1.5 million fine to settle a U.S. Securities and Exchange Commission charge that the beverage company made false statements about the recyclability of its K-Cup pods, the charging regulator said on Tuesday.
Keurig said in 2019 and 2020 that tests showed its K-Cup pods could be “effectively recycled,” while the two largest U.S. recycling companies expressed doubts about the commercial viability of recycling them and were unwilling to accept them, the SEC said in a statement. Keurig did not disclose to investors the negative feedback it received from recycling companies.
The SEC found that Keurig’s defaults violated key provisions of securities laws designed to protect investors. In addition to the civil penalties, the company agreed to issue a cease-and-desist order, regulators said.
A Keurig spokesperson, who neither admitted nor denied the SEC’s findings, said the company was pleased to resolve the case and that its K-Cup pods are made from recyclable plastic that is shredded in North America’s curbside recycling system.
“We continue to encourage consumers to verify the acceptability of pods through their local recycling program, as many communities do not recycle pods,” the spokesperson said.
