Keurig has agreed to a $1.85-million class-action lawsuit settlement in Canada over “misleading” claims about the recyclability of its coffee pods.
Customers could receive up to $50 each as part of the proposed settlement. Pending court approval in December, settlement payments will be available to anyone who purchased Keurig K-Cup Pods or Keurig brewing machines in Canada from June 8, 2016, to present.
According to a settlement notice released on Monday, Keurig has denied all liability and asserts that its conduct was lawful. The courts have also not made a ruling on who was “right,” the notice says.
The class-action lawsuit stemmed from Keurig’s allegedly “misleading representations” about the recyclability of its single-use coffee pods. Following an investigation from the Competition Bureau of Canada, in 2022 Keurig agreed to pay a $3-million penalty and donate $800,000 to a Canadian environmental charity.
“The Bureau’s investigation concluded that Keurig Canada’s claims regarding the recyclability of its single-use coffee pods are false or misleading in areas where they are not accepted for recycling,” the Competition Bureau of Canada said in a 2022 news release. “The Bureau found that, outside the provinces of British Columbia and Quebec, K-Cup pods are currently not widely accepted in municipal recycling programs.”
As part of the 2022 agreement, Keurig also paid $85,000 to cover the cost of the investigation and promised to change its recycling claims in advertising and product packaging.
“Portraying products or services as having more environmental benefits than they truly have is an illegal practice in Canada,” commissioner of competition Matthew Boswell said at the time. “False or misleading claims by businesses to promote ‘greener’ products harm consumers who are unable to make informed purchasing decisions, as well as competition and businesses who actually offer products with a lower environmental impact.”
According to the Competition Bureau of Canada, the “deceptive marketing practices provisions of the Competition Act forbid companies from making false or misleading claims about a product or service to promote their business interests.”
If the latest settlement is approved during a Dec. 8 court date in Ottawa, Keurig customers will be able to file an online claim. Those who submit proof of purchase could receive up to $25 for brewing machines and $0.50 for every 10 pods up to a maximum $50. Without proof of pod purchase, claims will be capped at $7.
Parent company Keurig Dr Pepper Inc. did not immediately respond to a request for comment.
“K‑Cup pods are not widely recycled in municipal recycling programs outside of British Columbia and Quebec,” Keurig Canada admitted in a 2022 statement. “Canadian consumers need to be aware that K‑Cup pods are only recyclable in select locations.”
