Pepsi and Coca-Cola Sued for Plastic Bottle Recycling Fraud

On October 30th, local time, a lawsuit was filed in the Los Angeles Superior Court in California, USA, against beverage companies PepsiCo and Coca-Cola, alleging that these companies misled consumers about the recyclability of their plastic bottles. The lawsuit further accuses the companies of failing to disclose the "significant environmental and health hazards associated with using plastic beverage containers."

The lawsuit statement claims: “Coca-Cola and PepsiCo have misled the public’s understanding of the environmental impact of plastic beverage containers by claiming they are ‘recyclable,’ even though they know that the disposal methods of plastics affect the environment.” The statement asserts that current recycling methods cannot eliminate these environmental impacts and adds that most plastic containers ultimately end up in landfills or as waste. Additionally, “the production, disposal, and recycling of plastics contribute to greenhouse gas emissions and environmental impacts, negatively affecting county residents.”

Environmental activists have pointed out that the lack of recycling infrastructure near consumption locations has become a major concern in the environmental movement, even if the bottles themselves are technically recyclable. Reports also mention that activists are challenging the definition of “recyclable,” arguing that a product should only be labeled as such if a sufficient population has access to recycling infrastructure.

The lawsuit further argues that plastic does not biodegrade but rather breaks down into smaller and smaller microplastics, which pollute “natural resources in Los Angeles, harm the environment and wildlife, and pose a threat to public health.” Additionally, the lawsuit accuses Pepsi and Coca-Cola of falsely claiming that recycling their plastic bottles supports a circular economy.

The Los Angeles government commented, “In reality, plastic bottles can only be recycled at most once, making it impossible to achieve a ‘circular economy.’”

Response from the American Beverage Association

The American Beverage Association strongly responded, with its head of media and public affairs stating in an interview with the Los Angeles Times: “California’s bottle recycling rate is one of the highest in the nation—reaching 71% in 2023. Our bottles are designed for recycling and reuse, and can contain up to 100% recycled plastic.”

According to the Los Angeles Times, Coca-Cola and PepsiCo, along with their numerous brands, hold approximately 72.8% of the U.S. carbonated soft drink market. Data from the “Break Free From Plastics” initiative recently identified Coca-Cola as one of the “world’s largest known plastic polluters.” The lawsuit seeks to ban these allegedly fraudulent business practices, return consumer funds obtained through deceptive practices, and impose a civil penalty of up to $2,500 per violation.

ExxonMobil Also Accused of Plastic Recycling Fraud

The Los Angeles lawsuit marks the latest action by California in its fight against plastic pollution, targeting well-funded corporations. 

Similarly, on September 23rd, the California Attorney General announced a lawsuit filed in San Francisco Superior Court accusing ExxonMobil of “decades of deception contributing to and exacerbating the global plastic pollution crisis.” The lawsuit alleges that ExxonMobil has misled consumers for years, creating a “myth” surrounding plastic recycling.