Keurig settles K-Cup class action, offers customers up to $50

Canada Fibers Ltd. Plant Manager Brian Sneyd holds Keurig pods coffee pods at the company's Toronto location on August 10, 2017. Photo by Peter J. Thompson

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Keurig Dr Pepper Inc. has settled a class-action lawsuit related to the recyclability of its K-Cups for $1.85 million, offering customers up to $50 in damages.

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The settlement, subject to court approval in December, is available to all Canadians who purchased the coffee pods or a Keurig coffee machine between June 8, 2016, and the present day.

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The lawsuit alleged that Keurig K-Cup pods and brewing machines “contained misleading representations as to the recyclability of the pods contrary to the Competition Act and the common law.”

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Keurig has denied any wrongdoing and said its conduct was lawful.

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Keurig said K-Cups are available for recycling in “various regions,” including British Columbia and Quebec, with more provinces expected to join the list in 2026.

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“The company remains committed to advancing sustainable solutions and to working with consumers, municipalities, and partners to ensure that its products can be effectively collected, sorted, and recycled,” a spokesperson for the company said in a statement.

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Claimants without proof of purchase will be able to get up to $7 per person, while those with proof will be offered 50 cents for each 10-pod purchase, up to $50.

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Those with proof of a coffee machine purchase and one pod purchase will be able to claim up to $25.

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In 2022, the Competition Bureau fined Keurig Canada $3 million and ordered it to make an $800,000 charitable donation over environmental claims the company made about the recyclability of its pods.

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At the time, the bureau said the claims that the pods are recyclable were misleading in areas where they are not accepted for recycling.

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“Keurig Canada’s claims give the impression that consumers can prepare the pods for recycling by peeling the lid off and emptying out the coffee grounds, but some local recycling programs require additional steps to recycle the pods,” the Competition Bureau said in 2022.

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