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The US Sun
Keurig will pay $1.5 million penalty over K-Cups – after claims of false information about its coffee pods
By Josephine Fuller,
6 hours ago
KEURIG has been fined $1.5 million to settle charges that it misled shoppers and the government about its famous K-Cups.
The Security and Exchange Commission leveled the civil penalty against the coffee giant after finding that it falsely claimed its K-Cups were recyclable.
The SEC filed charges against Keurig regarding statements about recycling Getty Images The company agreed to pay a $1.5 million civil penalty to settle the charges Getty Images
Between fiscal years 2019 and 2020, Keurig stated that its testing with recycling centers “validate[d] that [K-Cup pods] can be effectively recycled,” according to a statement from the SEC .
However, Keurig did not disclose that two of the largest recycling companies in the US expressed significant concerns regarding the feasibility of actually recycling pods, the SEC said.
At the time, the companies indicated they did not intend to accept K-Cup pods for recycling.
In fiscal year 2019, K-Cup pods made up a significant percentage of net sales for Keurig’s coffee systems. A study found that many consumers bought the pods specifically because of environmental concerns.
“Public companies must ensure that the reports they file with the SEC are complete and accurate,” said John T. Dugan, associate director of the Boston regional office.
“When a company speaks to an issue in its annual report, they are required to provide information necessary for investors to get the full picture on that issue so that investors can make educated investment decisions.”
Keurig did not admit to or deny any of the findings but agreed to a cease-and-desist order and to pay the civil penalty.
Plaintiff Kathleen Smith filed a class action lawsuit against the company, saying the pods “usually still end up in landfills” despite marketing saying otherwise.
Keurig's K-Cups are small plastic cups sealed with coffee, tea, or even hot chocolate mix.
They’re made specifically for Keurig machines and serve a single cup of hot beverage in seconds.
Several companies have started producing their own pods that fit into the Keurig machines.
However, Keurig warns on its website that only the brand name ones are “optimally designed” to fit in the machine and keep it running at its best.
The company began testing K Rounds, compacted pucks of coffee that would eliminate the need for plastic pods.
They will be released with the new Keurig Alta, a special machine that brews plastic-free pods.
“Today, we are applying all our expertise to create a revolutionary new system that will redefine how consumers will brew coffee for decades to come,” said CEO Bob Gamgort.
The K Rounds come in four sizes: espresso shot size, regular, double shot size, and a slightly larger pod for cold coffee.
It is not yet clear when the K Rounds will hit shelves.
Who has all their receipts for all the K cups they have bought? Seriously? If I went by 4 cups per day x 2,190 for days in 6 years I’d have receipts 8,760 K cups. Ok who has all their receipts?
Jolette may
45m ago
Who, in the world, ever thought the cups are recyclable? Sure, it nay have the triangle on the bottom, but really? We get out the grounds and use them in our compost container.
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