Canada’s Competition Bureau stated that Keurig Canada will pay a CA$3 million penalty for making false or misleading claims that its single-use K-Cup pods can be recycled.
In a statement, the bureau said the company voluntarily reached an agreement that will include the fine plus an CA$800,000 donation to an environmental charity and CA$85,000 in Competition Bureau expenses for the case.
Keurig reportedly came to an agreement to settle a class-action suit in the United States over the same issue last month, though the details of that settlement are not yet public.
The company was investigated by the Competition Bureau for claims its single-use plastic beverage pods could be recycled if consumers peeled off the metallic lid and emptied out any contents like coffee grounds.
But the bureau stated the K-Cups aren’t widely accepted for recycling in any province except Quebec and British Columbia and those instructions don’t go far enough for many cities that might accept them in a recycling program.
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