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Coca-Cola and PepsiCo hit with government lawsuit for allegedly misleading consumers: 'Falsely promoting and distributing'

The lawsuit is asking for more accountability.

The lawsuit is asking for more accountability.

Photo Credit: iStock

The government of the Virgin Islands is taking a stand against Coca-Cola and PepsiCo as the plastic waste crisis in the popular tourism destination spirals out of control. 

What's happening?

In April, the Virgin Islands Consortium reported that the Virgin Islands filed a lawsuit against the soft drink giants and their local manufacturers and distributors, alleging they've engaged in deceptive business practices and become public nuisances. 

"Due in significant part to Defendants' conduct in falsely promoting and distributing single-use plastic the Virgin Islands faces a waste management crisis," the lawsuit reads. 

The complaint says Coca-Cola and PepsiCo have misled consumers about the recyclability of their plastic bottles, placing the responsibility for the plastic-waste crisis on the latter's shoulders — while quietly lobbying to weaken environmental protections and regulations worldwide. 

The 42-page civil complaint details how plastic pollution has become "nearly impossible to fully clear from public areas," with the U.S. territory's two landfills near capacity or full. 

The lawsuit, which lists the commissioner of the Department of Licensing and Consumer Affairs as a plaintiff, also says the companies are "purposefully manufacturing, bottling, and selling excessive amounts of beverages packaged in single-use plastic bottles without implementing or paying for an environmentally responsible way to dispose of them." 

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And despite promises to reduce their use of virgin plastic — usually derived from dirty fuels that release heat-trapping gases into the atmosphere — both companies had abysmal recycled plastic sourcing rates in 2022, according to the lawsuit. Coca-Cola's rate was less than 14%, while PepsiCo's clocked in at 6%. 

Why is this important? 

Even though Coca-Cola and PepsiCo have "clothed themselves in the language of sustainability," per the Consortium, they are the world's top two plastic polluters, producing 6.3 million tons of plastic each year. 

As the lawsuit notes, plastic pollution causes environmental degradation and negatively impacts marine life. Research has also linked microplastics (no larger than the diameter of a pencil-top eraser) to a variety of health concerns, including cancer, dementia, and heart disease

Beyond being a menace to public health, the plastic crisis in the Virgin Islands could negatively impact a tourism industry that accounts for around 60% of the territory's gross domestic product, according to a government report.

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The islands are also particularly vulnerable to the effects of the warming climate, with rising sea levels and more intense extreme weather threatening beloved tourism attractions and the livelihoods of people who depend on revenue from the industry. 

What can be done about this? 

Coca-Cola and PepsiCo have taken steps toward a cleaner future. 

For instance, a Coca-Cola plant in Philadelphia has swapped its plastic six-pack rings for fiber-based paper packaging, while PepsiCo has invested in sustainable agriculture. Both companies have also introduced electric semis to their delivery fleets, among other things. 

Nonetheless, the lawsuit is asking for more accountability.

The plaintiffs petitioned the court to ban Coca-Cola and PepsiCo from engaging in deceptive trade practices and asked it to issue fines commensurate with the violations alleged in the suit, including failure to adhere to the territory's Consumer Protection Law of 1973 and the Consumer Fraud and Deceptive Business Practices Act.

Educating yourself about greenwashing can help you spot when a brand's sustainability claims seem too good to be true. And if you have a craving for a beverage when you're on the go, try to avoid single-use plastic packaging.

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