Keurig Canada fined $3 million for misleading claims over coffee pod recyling

The Competitors Bureau says Keurig Canada can pay a $3 million penalty for making false or deceptive claims that its single-use Okay-Cup pods will be recycled.

In a press release Thursday, the bureau says the corporate voluntarily reached an settlement that may embrace the high-quality plus an $800,000 donation to an environmental charity and $85,000 in Competitors Bureau bills for the case.

Keurig reportedly got here to an settlement to a settle a class-action go well with in america over the identical concern final month, although the small print of that settlement aren’t but public.

The corporate was investigated by the Competitors Bureau for claims its single-use plastic beverage pods might be recycled if shoppers peeled off the metallic lid and emptied out any contents like espresso grounds.

However the bureau mentioned the Okay-Cups aren’t broadly accepted for recycling in any province besides Quebec and British Columbia and people directions do not go far sufficient for a lot of cities that may settle for them in a recycling program.

Ordered to alter packaging, inform subscribers

Along with the monetary penalties, Keurig Canada has to alter its packaging, publish notices in regards to the adjustments on its web sites, social media and in native and nationwide media shops, in addition to embrace the data in packaging for brand new Keurig brewing machines and ship an e mail to subscribers.

“Portraying services or products as having extra environmental advantages than they really have is an unlawful follow in Canada,” Commissioner of Competitors Matthew Boswell mentioned in a press release.

“False or deceptive claims by companies to advertise ‘greener’ merchandise hurt shoppers who’re unable to make knowledgeable buying choices, in addition to competitors and companies who truly provide merchandise with a decrease environmental impression.”

Okay-Cups not accepted by many recycling applications

Cynthia Shanks, senior director for communications and sustainability at Keurig Canada, mentioned in an emailed assertion that three years in the past, Keurig switched its pods to make use of the kind of plastic that’s mostly accepted by Canadian recycling applications.

However she mentioned many nonetheless don’t settle for Okay-Cups.

“As we proceed working with municipalities and the recycling trade to extend Okay-Cup pod recycling acceptance, we have been evolving our communications with shoppers to share that the pods are recyclable in choose communities and remind them of the suitable steps to recycle,” Shanks mentioned.

“The settlement with the Competitors Bureau of Canada will additional improve our communications, reminding shoppers to confirm whether or not Okay-Cup pods are accepted of their municipality’s recycling program and, in that case, any extra steps which may be obligatory to arrange the pods for recycling.”

The Competitors Act prohibits firms from making false or deceptive claims about their merchandise, together with environmental claims. 5 years in the past, the Competitors Bureau issued a warning to firms that “greenwashing” their merchandise is against the law in Canada.

“The Competitors Act takes purpose at environmental claims which can be imprecise, non-specific, incomplete, or irrelevant and that can’t be supported by verifiable check strategies,” the 2017 assertion reads.

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