Keurig customers in Canada may be entitled to a payout after the makers of K-Cup single-serve coffee pods and brewers agreed to settle a lawsuit claiming the company misrepresented the ability to recycle its pods.
Customers may qualify if they purchased the pods, machines or brewing systems in Canada from June 8, 2016 to present, according to a notice announcing the settlement on Monday.
“Keurig Canada has reached a settlement with the Competition Bureau Canada to resolve the Bureau’s concerns under the deceptive marketing practices provisions of the Competition Act about Keurig Canada’s claims about the recyclability of Keurig® K‑Cup® pods,” Keurig said in a statement on its website.
“The Competition Bureau concluded that the claims create the impression that the pods can be recycled in each municipality where the claims are made. However, the K‑Cup® pods are not widely recycled in municipal recycling programs outside of British Columbia and Quebec.”
The proposed class-action lawsuit was filed by the Competition Bureau of Canada, and if the settlement is approved by an Ontario Superior Court judge, Keurig will have to pay a total of $1.85 million.
The motion to approve the settlement will be heard in court on Dec. 8.
In January 2022, the Competition Bureau ordered Keurig to pay a $3-million penalty and donate $800,000 to a Canadian environmental charity organization in connection with the case.
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This was in addition to costs for the bureau’s investigation, an order that Keurig change its recyclable claims and packaging for K-Cup pods and take steps to show more transparency.
“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 in a statement in 2022.
“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 proposed class-action claim statement, Keurig has denied any intention of misleading customers and “asserted that their conduct was lawful.”
The amount customers may be able to receive from the Keurig settlement depends on the number of claims submitted by Canadians.
If the settlement is approved, a form for individuals to submit their claim will be available online.
“Settlement Class members who do not provide a proof of purchase of a Pod during the Class Period may receive a maximum of $7.00 per claim for Pod(s) submitted,” the claim statement says.
“Settlement Class members who provide a proof of purchase of at least one Pod during the Class Period may receive the greater of: (i) a maximum of CAD $0.50 for every 10 Pods (rounded up to the nearest 10 Pod increment) up to a maximum of CAD $50.00 per claim; or (ii) CAD $7.00 per claim for Pod(s) submitted.”
The claim statement says customers who may have also purchased a brewer with pods and provide proof of purchase will be able to claim up to $25.
Keurig says it plans to change the packaging and advertising for its products so customers have a better idea of how to recycle items like K-Pods.
“As part of the settlement, Keurig Canada has agreed to make changes to the packaging of K‑Cup® pods and brewers as well as its advertisements going forward,” Keurig said.
“Canadian consumers need to be aware that K‑Cup® pods are only recyclable in select locations and are therefore encouraged to check with their local program to find out if the K‑Cup® pods are recyclable, and if they are, then how to recycle them.”
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