Keurig Dr Pepper misled consumers by promoting its K-Cups as recyclable "in many communities" in the U.S. and Canada, despite most facilities not handling them.
The fine issued by the SEC is part of a broader initiative to scrutinize companies that make exaggerated environmental claims, sending a stark message against greenwashing.
Keurig Dr Pepper's transition to polypropylene plastic for pods is theoretically recyclable, but small mixed-material items like K-Cups rarely get recycled in practice.
The settlement with Keurig Dr Pepper signifies regulators' increasing seriousness about holding companies accountable for environmental claims that mislead consumers and investors.
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