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World of Software > News > Coca-Cola and PepsiCo hit with federal lawsuit after ‘misleading’ shoppers
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Coca-Cola and PepsiCo hit with federal lawsuit after ‘misleading’ shoppers

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Last updated: 2025/05/10 at 12:05 AM
News Room Published 10 May 2025
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SOFT drink giants Coca-Cola and PepsiCo have been hit with federal lawsuits after “misleading” their consumers.

The Virgin Islands government took the stand against the two iconic brands, in the face of a worsening waste crisis.

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Coca-Cola and PepsiCo are facing a lawsuit from the Virgin Islands governmentCredit: Alamy

They filed the lawsuit against Coca-Cola and PepsiCo in April, according to Virgin Islands Consortium.

Officials allege that the two renowned firms, as well as their manufacturers and distributors, have engaged in deceptive business practices and become public nuisances.

The bombshell lawsuit reads: “Due in significant part to Defendants’ conduct in falsely promoting and distributing single-use plastic the Virgin Islands faces a waste management crisis.”

The complaint also said that the two firms misled consumers about the recyclability of their plastic bottles.

They blamed PepsiCo for the worsening plastic-waste crisis, and alleged that they quietly lobbied to weaken environmental protections.

The huge 42-page civil complaint details how plastic pollution has become “nearly impossible to fully clear from public areas”.

The U.S. territory said their two landfills were near capacity or full.

The government alleged that the fizzy drink companies were “purposefully 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”.

Despite promises to reduce their use of virgin plastic, the two firms had poor rates of recycled plastic sourcing in 2022.

The lawsuit said that Coca-Cola’s rate was less than 14 per cent, while PepsiCo’s was just 6 per cent.

Moment Just Stop Oil eco yob lays down in front of Coca-Cola truck during Pride march in London

It also detailed why plastic pollution causes environmental degradation and negatively impacts marine life.

They highlighted research on microplastics, which have been linked to health concerns such as cancer, dementia and heart disease.

A Virgin Islands government report said that the plastic crisis there could negatively impact tourism.

The crucial industry which hosts holidaymakers accounts for around 60 per cent of the territory’s gross domestic product.

Coca-Cola have been taking steps to address the growing concerns.

A Coca-Cola plant in Philadelphia for example has swapped its plastic six-pack rings for paper packaging, while PepsiCo has invested in sustainable agriculture.

But the plaintiffs still requested the court to ban Coca-Cola and PepsiCo from engaging in deceptive trade practices.

They also asked it to issue fines according to the violations alleged in the suit.

Coca-Cola bottles made from 100% recycled materials.

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The lawsuit argued that the firms were responsible for the worsening plastic-waste crisisCredit: AFP

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