Minnesota Settles Lawsuit on Deceptive Recycling Labeling

Deceptive labeling impacts our operations daily at Eureka. Companies will often label something as recyclable causing it to end up in the recycling stream – adding to contamination and the cost of recycling. False recycling claims create distrust in recycling systems and can hinder genuine efforts to reduce waste and promote recycling and zero-waste initiatives.

Last week, Minnesota saw progress toward the effort for transparent and accurate labeling. Minnesota Attorney General Keith Ellison won a settlement against Walmart and Reynolds Consumer Products, the parent company of Hefty Bags.

The lawsuit alleged that the two companies have been misleading Minnesota consumers through their marketing of “recycling” bags that cannot actually be recycled in residential recycling programs within the state of Minnesota, nor can they be used to collect and send recyclable materials to collection facilities.

Often adorned with symbols and statements that suggest recyclability, these bags have been marketed as a convenient way to contain recyclables. However, the bags are not accepted in the majority of the state’s residential recycling programs, rendering their recycling claims inaccurate. In fact, when materials enter recycling facilities in plastic bags, the whole bag and all its contents need to be thrown away.

As part of the settlement, Walmart and Reynolds Consumer Products must not sell the bags in Minnesota for 2 ½ years. After that period, the companies may sell the bags, but only if they display text on the packaging that reads, “These bags are not recyclable.” Additionally, Walmart is required to pay $59,000, representing their profit from selling the bags in Minnesota, plus $25,000 in attorney fees. Reynolds Consumer Products must pay nearly $133,000, including approximately $54,000 in profits, according to the settlement.

We know residents want to do the right thing when it comes to recycling. They should be able to trust that what they are placing in their recycling bins will actually be recycled and won’t simply add to the contamination of the stream or end up being buried or burned. We thank Attorney General Ellison for taking action on this important issue and hope to see more companies adopt clear and accurate labeling.

While the actions taken by Attorney General Ellison are crucial, we also need action at the federal level. In 2022, the Federal Trade Commission (FTC) announced its intent to update the Guides for the Use of Environmental Marketing – also known as the Federal Green Guides. The Green Guides could play a vital role in curbing misinformation from companies across the country. However, the Green Guides, which have not been updated since 2012, have not been successful in prohibiting or limiting companies from making false or misleading claims regarding recyclability. As part of our work with the Alliance for Mission Based Recycling (AMBR), we  submitted comments to the Commission urging it  initiate a formal rulemaking process to establish independently enforceable requirements related to unfair and deceptive environmental claims.

Learn more about the impact of plastic bags in your recycling bin.