Coca-Cola and Pepsi Sued for Allegedly ‘Misleading’ Consumers

Coca-Cola and Pepsi are being sued by the government of the U.S. Virgin Islands 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.

Newsweek has contacted Coca-Cola and PepsiCo via email for comment.

Why It Matters

The lawsuit is intensifying the legal focus on global brands and their responsibility for plastic pollution, particularly in island territories where waste management infrastructure is limited.

The outcome of the lawsuit could have major implications for how multinational corporations communicate environmental claims about their products and for efforts to reduce single-use plastic waste in the United States and globally.

The case also draws attention to the specific vulnerabilities of small island communities—especially ones that rely heavily on environmental tourism—to plastic pollution, establishing a legal test for holding manufacturers accountable outside the U.S. mainland.

What To Know

The lawsuit 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.

It goes on to say that although the companies “brand themselves as sustainable,” that is not the reality of their products.

The Virgin Islands accused the companies of spending an insufficient, or unbalanced, amount on countering pollution. They cite that in 2019 the companies put $4.24 billion into marketing investments and advertisements, but only $11 million into their river-cleaning project.

This is not the first time the 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 Los Angeles said the soda companies 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 Virgin Islands’ filing and is ongoing in the Superior Court of California for Los Angeles County.

Coca-Cola and PepsiCo collectively own dozens of beverage brands, including Coke, Pepsi, Dasani, Smartwater, Fanta, Aquafina, Gatorade, 7-Up, Sprite, Vitamin Water and Mountain Dew. The two companies ranked as the world’s top plastic producers for the past five years, as of 2024.

What People Are Saying

The complaint against Coca-Cola and PepsiCo: “PepsiCo and Coca-Cola—the top plastic polluters in the world—have littered the Virgin Islands with their plastic bottles and engaged in a disinformation campaign to make consumers falsely believe that purchasing their products in single-use plastic bottles is an environmentally responsible choice.”

Los Angeles County Counsel Dawyn R. Harrison: “The goal of this lawsuit is to stop the unfair and illegal conduct, to address the marketing practices that deceive consumers, and to force these businesses to change their practices to reduce the plastic pollution problem in the County and in California. My office is committed to protecting the public from deceptive business practices and holding these companies accountable for their role in the plastic pollution crisis.”

What Happens Next

The Los Angeles case will likely go to court before the Virgin Islands case, and the decision made in California could impact the direction of the Virgin Islands suit.

The Virgin Islands are looking for monetary compensation and for the companies to pay to clean up the pollution caused by their bottles.