The agency said Keurig, in its financial filings, had claimed its pods could be “effectively recycled” but didn’t note that two big recycling companies wouldn’t accept them.

Through this trial, customers can pick up a free Podback recycling bag from participating Costa shops, fill them with used coffee pods, and then return them to the store. The coffee has also installed Podback recycling drop-off points in its outlets that are located within Tesco stores.

Despite claims by Keurig, a redesign of its plastic K-Cup products did not make them suitable for all curbside recycling.

Keurig agreed to pay $1.5 million in penalties — without admitting guilt or denying the SEC's findings that the K-Cup pod producer made inaccurate claims regarding the recyclability of those pods.