Minnesota Settles Lawsuit Over ‘Deceptive Environmental Marketing' of Plastic Bags
The lawsuit is part of a growing trend of plastics litigation in response to the global plastics crisis.
Walmart and Reynolds Consumer Products have agreed to cease selling certain plastic bags in Minnesota for two and a half years. This decision follows a lawsuit in which Minnesota Attorney General Keith Ellison claimed the companies falsely marketed the bags as recyclable.
Reynolds produces the Hefty-brand blue or clear 13- and 30-gallon-sized plastic bags targeted in the June 2023 lawsuit filed in Ramsey County District Court. The lawsuit also included similar claims against 13-, 30-, and 33-gallon bags sold under Walmart's Great Value brand.
According to the settlement agreements reached Thursday, if Walmart or Reynolds resume selling these bags after the moratorium, they must be labeled as non-recyclable.
The companies have agreed to pay a combined total of $216,670, which covers 100 percent of the profits from selling the bags, the state's attorney fees, and other monetary relief, as stated in a press release from Ellison's office.
"Defendants shall establish and enforce marketing claims legal review processes and provide anti-greenwashing training to their marketing teams at least annually," according to the settlement document.
In a written statement, Reynolds said, "We believe these claims lack merit, but are pleased to put this matter behind us. We remain committed to our sustainability mission to develop innovative products and solutions that simplify daily life and protect the environment."
A Walmart spokeswoman declined to comment on the settlement.
"Minnesotans have one of the highest recycling rates in America because we love our clean land, air, and water," Ellison said in the press release. "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. 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."
The Minnesota lawsuit is among nearly four dozen filed since 2015, mostly by citizens or environmental groups, targeting the plastics industry, according to a plastics litigation tracker at The New York University School of Law. Recently, attorneys general in Connecticut, Minnesota, and New York have brought their own plastics lawsuits, adding considerable legal firepower.
The litigation comes amid expanding scientific knowledge about how increasing plastics production and plastic waste damage the planet and threaten public health. Plastics, made with thousands of chemicals, were never designed to be recycled. Recycling rates in the United States are estimated to be less than 10 percent. Bags, in particular, are difficult to recycle due to their film-like and flimsy nature, which can clog recycling equipment.
Ellison argued that Walmart's and Reynolds' marketing violated state laws prohibiting false advertising, deceptive environmental marketing, and consumer fraud. The settlement agreement included a provision stating it should not be considered an admission of guilt or violation by the defendants.
The lawsuit presented photos of marketing materials that Ellison claimed were intended to falsely persuade Minnesotans that the bags were suitable for recycling. Some bags were blue, a color associated with some recycling programs, and included statements like "intended for use in municipal recycling programs where applicable." Clear bags were labeled as "transparent for quick sorting and curbside identification." Reynolds prominently placed the word "RECYCLING" on the front label of Hefty "Recycling" trash bags, with packaging showing a clear bag filled with plastic and the words, "HEFTY RECYCLING BAGS ARE PERFECT FOR ALL YOUR RECYCLING NEEDS."