Attorney General Ellison reaches settlement with Reynolds, Walmart over deceptive marketing of ‘recycling’ bags that are not recyclable

Companies to stop selling products in Minnesota for 2 ½ years, can reenter market only if bags are clearly marked as non-recyclable; will also pay $200K, equivalent of 100% of profits

AG Ellison sued companies in June 2023 over deceptively marketed ‘recycling’ bags that were not recyclable and rendered all materials in them unrecyclable, even if they were otherwise recyclable

August 1, 2024 (SAINT PAUL) — Minnesota Attorney General Keith Ellison announced today that his Office has reached settlements with Walmart and Reynolds Consumer Products, Inc. to resolve the Attorney General’s lawsuit against the companies for deceptively marketing “recycling” bags to Minnesotans that were not recyclable.

As part of the settlements, both Walmart and Reynolds will not sell those bags in Minnesota for two and a half years. If they decide to sell semi-transparent blue bags in Minnesota after that, the packaging and marketing may not be labeled “recycling bags” and must be conspicuously marked, “these bags are not recyclable.” In addition, Reynolds and Walmart will disgorge a collective total of $216,670, which includes 100 percent of the profits they made in selling their deceptively marketed ‘recycling’ bags, along with the State’s attorneys’ fees and other monetary relief. Reynolds further agrees to establish and enforce anti-greenwashing trainings and to establish a review process for marketing claims.

In June 2023, Attorney General filed a lawsuit against Walmart and Reynolds, the parent company of the Hefty bag trademark, for defrauding and deceiving Minnesota consumers through their marketing of so-called “recycling” bags. Those bags were not in fact recyclable in Minnesota and rendered unrecyclable all materials that Minnesotans put inside of them—even items that would otherwise be recyclable. Instead, items put in these bags ended up in the waste stream, contrary to consumers’ intentions. Moreover, any “recycling” bag that made its way into a recycling stream at any material recovery facility (MRF) in Minnesota had the potential to cause the sorting machinery to malfunction, which could cause fires and result in unsafe conditions for workers regularly who had to crawl into the machinery to remove them. A blog post by Minneapolis-based Eureka Recycling, which provides recycling services for several municipalities in the metro area, lays out these challenges in more detail.

“Minnesotans have one of the highest recycling rates in America because we love our clean land, air, and water. I’m pleased that Reynolds and Walmart, who profited from Minnesotans’ good intentions, have agreed to stop marketing so-called ‘recycling’ bags to us that can’t be recycled and will disgorge the profits they made off those bags,” Attorney General Ellison said. “Any other companies thinking about greenwashing their products to market them deceptively to Minnesotans should know by now that I will not hesitate to hold them accountable under the law.”

"We appreciate Attorney General Ellison and his team for their diligent efforts in holding companies accountable for these misleading and harmful practices. It is essential that brands take responsibility for the waste they produce and the claims they make about their products, particularly concerning their recyclability and environmental impact,” said Eureka Recycling Co-President and CEO Katie Drews. “Consumers genuinely want to make the right purchasing decisions, but they can be misled by false marketing claims. This settlement is a vital step toward ensuring transparency and integrity in the marketplace, protecting our recycling systems from contamination, and empowering consumers to make informed decisions that truly benefit the environment."

Tips for consumers

Eureka Recycling offers tips about plastic bags to consumers. Those tips include:

• Using reusable bags and refusing plastic bags.
• Repurposing plastic bags.
• Participating in store drop-off of plastic bags.
• Supporting and encouraging policies that discourage the use of plastic bags.

Attorney General Ellison encourages consumers to keep recycling. Consumers who have questions about the suitability of any items for recycling should contact their municipality or local material recovery facility.

Consumers with concerns about any other so-called “recycling” bags should contact Attorney General Ellison’s office by filing a complaint online. Minnesotans can also call the Attorney General’s Office at (651) 296-3353 or (800) 657-3787.