WASHINGTON (Reuters) -Keurig Dr Pepper Inc agreed to pay a $1.5 million fine to settle U.S. Securities and Exchanges Commission charges that the beverage company made inaccurate statements regarding the recyclability of its K-Cup pods, the regulator said on Tuesday.
In fiscal 2019 and 2020, Keurig said testing confirmed that K-Cup pods can be “effectively recycled”, but did not disclose that two of the largest U.S. recycling companies said they did not intend to accept them because it was not commercially feasible, the SEC said in a statement.
Representatives for Keurig, which did not admit or deny the SEC’s findings, did not respond immediately to requests for comment.
The SEC found that with the omission, Keurig violated key provisions of securities laws designed to protect investors. In addition to the civil penalty, the company agreed to a cease-and-desist order, the regulator said.
