In the latest of several cases alleging Keurig made false or misleading claims about the recyclability of its plastic coffee pods, Keurig Canada has agreed to a CA$1.85 million (US$1.3 million) class-action settlement.
The nationwide class action alleges Keurig marketed the pods as recyclable even though, in many municipalities, the pods weren’t accepted in local recycling systems.
The deal is pending court approval but would compensate people who bought Keurig pods or brewers in Canada as far back as 2016, according to court records and the settlement website.
The case covers “all persons in Canada who purchased Keurig K-Cup Pods and/or Keurig coffee machines or brewing systems sold in Canada from June 8, 2016, to present,” with potential payouts of up to CA$7 per claim for people without proof of purchase and up to CA$50 per claim at a rate of CA$0.50 per 10 pods. Class members could also receive up to CA$25 per claim for brewer purchases if the settlement is approved.
Keurig denies any wrongdoing, and the settlement notice emphasizes that it is a compromise of disputed claims and does not include an admission of liability by the company.
A History of Similar Allegations
Under a 2022 deal with the Canadian Competition Bureau, Keurig Canada agreed to pay a CA$3 million penalty, donate to an environmental charity and change its packaging and advertising to clarify that the pods are recyclable only in select locations.
In March of 2022, Keurig in the U.S. agreed to a US$10 million class-action settlement regarding claims made about pod recyclability.
In 2024, the U.S. Securities and Exchange Commission (SEC) charged Keurig Dr Pepper with making inaccurate statements regarding the recyclability of its single-use plastic K-Cups. To settle the charges, the company agreed to pay a US$1.5 million civil penalty without admitting or denying the SEC’s findings.
The SEC found that Keurig told investors that testing “validated” that pods could be effectively recycled, while omitting that two large U.S. recycling companies had raised serious concerns and did not intend to accept the pods.
The proposed settlement comes as Keurig Dr Pepper pursues a separate deal to acquire global coffee conglomerate JDE Peet’s, valued at about US$18 billion. Under that agreement, KDP plans to combine its coffee business with JDE Peet’s and later spin the combined “Global Coffee Co.” into a standalone pure-play coffee company with a portfolio spanning more than 100 countries.
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