Coca-Cola and PepsiCo, two of the world’s most iconic beverage giants, are getting sued – and this time, it’s not over what’s inside the bottle, but what’s outside.
The U.S. Virgin Islands government has launched a federal lawsuit accusing both companies of “deceptive business practices” and making false claims about the recyclability of their plastic bottles – a move they say has helped fuel a worsening environmental crisis across the islands.
According to the explosive 42-page complaint, Coca-Cola and PepsiCo have knowingly promoted single-use plastic packaging as recyclable while allegedly lobbying to weaken environmental regulations behind the scenes. The lawsuit even labels them “public nuisances,” holding them directly responsible for the ballooning plastic waste crisis that’s choking the territory’s beaches, landfills, and marine ecosystems.
“Due in significant part to Defendants’ conduct… the Virgin Islands faces a waste management crisis,” the complaint reads.
What’s the Core of the Lawsuit?
- Misleading Claims: The companies allegedly misrepresented how recyclable their products are, pushing the narrative that plastic bottles are eco-friendly – despite internal sourcing rates telling a different story.
- Recycling Rates: In 2022, Coca-Cola reportedly sourced less than 14% of its plastic from recycled materials. PepsiCo? Just 6%.
- Plastic Crisis Fallout: The Virgin Islands says the plastic pollution has made parts of the territory “nearly impossible to fully clean,” jeopardizing both the environment and the tourism industry – which makes up around 60% of their GDP.
- Demand for Accountability: The government is asking the courts to ban these alleged deceptive practices and impose fines on both brands.
Why It Matters
Aside from damaging the environment, the lawsuit links microplastic contamination to growing public health concerns, including cancer, dementia, and heart disease. Marine life is also being affected, with wildlife often ingesting or getting entangled in plastic waste.
Officials say the two local landfills are already at or near capacity, and that Coca-Cola and PepsiCo have failed to fund or implement any responsible recycling infrastructure – even as their products dominate store shelves.
Have the Brands Responded?
Coca-Cola has pointed to efforts like switching to paper-based six-pack rings at its Philadelphia plant, while PepsiCo claims it’s investing in sustainable agriculture. But Virgin Islands officials aren’t buying it – especially as pollution worsens and local ecosystems suffer.
The lawsuit suggests this is about more than packaging. It’s about two global corporations prioritizing profits while allegedly externalizing the environmental cost to local communities.
