Recycling startup TerraCycle will change some labels and audit its operations after settling a lawsuit that alleged it was misleading consumers about whether their trash would get recycled
TerraCycle Chief Executive Tom Szaky said what the consumer-goods companies agree to pay sometimes only covers a limited amount of waste. When that happens, people who try to sign up online may be put on a waiting list.
They also agreed not to label products that are part of TerraCycle’s program as “100% recyclable,” and TerraCycle will enlist a third party to verify what happens to the waste it collects and share the information with Last Beach Cleanup and the companies. TerraCycle’s CEO said it was already planning to sign up an auditor. The labelling requirements need to be met by the end of this year and October 2022.
The lawsuit also said it was “hard to believe” TerraCycle’s claimed recycling rates for the waste it collects, citing much lower industrywide recycling rates. Mr. Szaky said the waste was never incinerated. It was sent to a recycler in Bulgaria due to human error and was returned to the U.K. for recycling after it came to the company’s attention, he said. TerraCycle committed in the settlement not to incinerate any collected waste, but that promise was “no big deal,” Mr. Szaky said. “We already do it,” he said.
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