09:48 AM EDT, 09/10/2024 (MT Newswires) -- The US Securities and Exchange Commission said Tuesday that Keurig Dr Pepper ( KDP ) will pay a $1.5 million fine to settle charges due to "inaccurate statements" related to the recyclability of its K-Cup pods.

The regulator said that in annual reports for fiscal 2019 and 2020 Keurig said that its testing with recycling facilities "validate[d] that [K-Cup pods] can be effectively recycled."

"But Keurig did not disclose that two of the largest recycling companies in the [US] had expressed significant concerns to Keurig regarding the commercial feasibility of curbside recycling of K-Cup pods at that time and indicated that they did not presently intend to accept them for recycling," the SEC said.

A Keurig spokesperson told MT Newswires that the company is "pleased to have reached an agreement that fully resolves this matter."

"Our K-Cup pods are made from recyclable polypropylene plastic (also known as #5 plastic), which is widely accepted in curbside recycling systems across North America," the Keurig spokesperson said. "We continue to encourage consumers to check with their local recycling program to verify acceptance of pods, as they are not recycled in many communities."

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