USVI Sues Coke & Pepsi

  USVI Sues Coke & Pepsi

M.A. Dworkin

     The U.S. Virgin Islands has followed the lead of the city of Los Angeles and filed suit against soda giants Coca-Cola and PepsiCo over “misleading” customers with their recycling claims.

     Both soda companies and their distributors have claimed that their plastic bottles are recyclable. However the Virgin Islands say the bottles are single-use and are overwhelming their waste management systems and the islands’ environment. 

     The lawsuit, filed against the soft drink giants and their local manufacturers and distributors, which alleges they have engaged in deceptive business practices and become public nuisances, is intensifying the legal focus on global brands and their responsibility for plastic pollution, particularly in island territories where waste management infrastructure is limited.

     “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 also states that the two companies have placed the responsibility for the plastic-waste crisis on the shoulders of the USVI 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 (DLCA) as a plaintiff, also goes on to contend that the two companies are “purposely 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.”

     And despite Coke and Pepsi’s continued 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%. Combined, they are the world’s two top 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 microplastic (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 recent government report titled “Tourism Master Plan.”

     According to UNESCO Ocean Literacy, an estimated 8 to 10 million metric tons of plastic enters the ocean each year. This is roughly equivalent to two garbage trucks full of plastic being dumped into the ocean every minute.     

     The outcome of the lawsuit could have major implications in reducing single-use plastic waste in the United States and globally. It may also affect how multinational corporations communicate environmental claims about their products.

     As the plastic waste crisis in the USVI spirals out of control, the case is drawing attention to the specific vulnerabilities of small island communities like the U.S. Virgin Islands, who rely heavily on environmental tourism. It very well may establish a legal test for holding manufacturers accountable for their actions outside the U.S. mainland.

     The lawsuit specifically alleges that Coca-Cola and PepsiCo promoted misleading messages about the recyclability of their plastic bottles while continuing to market and sell products that are creating an unmanageable waste situation on the islands. The suit goes on to allege that although these global companies “brand themselves as sustainable” that is not the reality of the products they are selling.

     The USVI accused the two companies of spending an insufficient, or unbalanced, amount on countering pollution. The suit cites that in 2019 the two companies put $4.24 billion into marketing investments and advertisements, but only $11 million into their river-cleanup project,

    This is not the first time the two companies have been sued over alleged misleading recycling claims. In 2024, Los Angeles sued Coca-Cola and PepsiCo over their plastic bottles, saying the companies had engaged in “disinformation campaigns.”

The plaintiffs in the L.A. case said the soda giants were claiming that the bottles were continuously recyclable, when in reality, plastic bottles can be recycled only once, if at all. 

     The suit in Los Angeles is similar to the U.S. Virgin Islands’ filing, and is ongoing in the Superior Court of California for Los Angeles County.     

     The St. Croix Times reached out to Coca-Cola and PepsiCo for comment but have received no reply as of press time.