PepsiCo hit with lawsuit over allegedly misleading its customers: 'False and deceptive'
A nonprofit organization has taken legal action against one of the world's largest food and beverage corporations for "false and deceptive marketing."
The Plastic Pollution Coalition announced it filed the complaint against PepsiCo in the District of Columbia Superior Court earlier this month. It's the latest in a string of lawsuits involving corporations and potentially misleading claims about environmental practices — also known as greenwashing.
In the complaint, PPC said PepsiCo falsely stated that the packaging for Aquafina water does not contain BPA. However, the nonprofit said test results revealed the harmful chemical is in fact included in the plastic.
PPC also said PepsiCo's website uses misleading language about the corporation's dedication to sustainability despite practices that suggest otherwise. Julia Cohen, the co-founder and managing director of PPC, called the marketing tactics deceptive and manipulative.
"The facts are: Plastic pollutes water and our bodies, plastic is unhealthy for people and the planet, and recycling cannot solve the plastic pollution crisis that the corporations producing bottled water helped create," Cohen said.
Recycling plastic properly does benefit the environment by keeping trash out of landfills. However, rapid plastic production slows down progress. According to a report, the bottled water industry was responsible for about 25 million tons of plastic waste in 2021.
A study revealed that 56 companies account for about half of the world's plastic pollution, which can pose threats to both human health and the environment. According to the U.S. Environmental Protection Agency, plastic pollution can take hundreds of years to decompose.
PepsiCo was one of the top global plastic polluters in 2023, per the Global Brand Audit. In fact, the report found that PepsiCo had more branded plastic waste items than the Coca-Cola Company for the first time.
Despite some harmful environmental practices, PepsiCo does have initiatives in place to push for a more sustainable future. The corporation announced plans last year to explore regenerative agriculture with more than $6 million in grants. PepsiCo also said all its beverages will be sold in reusable packaging by 2030.
PepsiCo isn't the only corporation to use greenwashing as a marketing tactic. According to a survey, nearly 60% of global companies admit to doing so.
Do you think America has a plastic waste problem?
Definitely
Only in some areas
Not really
I'm not sure
Click your choice to see results and speak your mind.
Officials are cracking down on greenwashing overseas. Earlier this year, the Italian Competition Authority fined three transport companies for influencing customers with false claims about sustainable practices.
For consumers, there are ways to spot greenwashing early. Experts have revealed some "greenwashing flags" to look out for while shopping. Additionally, sustainability and climate brands can provide trusted information about which companies might be deceiving customers.
Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
5 hours ago
- Yahoo
Tariff uncertainty is hammering one of America's favorite food escapes — snacks
Tariff uncertainty and inflation are driving consumer decisions at the grocery stores, and for big packaged food companies, one key area is bearing the brunt of these changes: snacking. In its quarterly report released Monday, Campbell's (CPB), which owns snack brands like Goldfish crackers and Cape Cod chips, said that it saw "increased headwinds" in snacking, leading to a 5% decline in volume mix and an 8% decrease in revenue in its fiscal third quarter results. Consumers "are increasingly intentional about the discretionary snack purchases," CEO Mick Beekhuizen told investors on the company's earnings call, a trend that has only gotten worse as the year's gone on. "If you look at the quarter, Q3, and you put it in perspective versus Q2, you see... the aggregate categories deteriorated... driven by the deteriorating consumer confidence," Beekhuizen added. Campbell's is only the latest in a series of packaged food giants to call out a shift in snacking behavior. "Revenue management clearly is becoming more complex," PepsiCo (PEP) CEO Ramon Laguarta told investors on the company's earnings call in late April, "as consumers are feeling more challenged with their disposable income." Laguarta said consumers' approach to shopping changed in the quarter. In early April, consumers were looking to see how much they got per item, and by the end of the month, they were more focused on the "absolute price per unit." Pepsi's snack portfolio includes Frito-Lay brands like Lays, Cheetos, Doritos, and Tostitos, among others. Kraft Heinz's (KHC) portfolio overall — ranging from Jell-O to Lunchables — saw its volume mix drop 5.6 percentage points in the quarter. Kellanova (K), which is behind brands like Cheez-Its and Pringles, saw its volume decline in North America. The company is in the process of being acquired by Mars. The summer months could potentially catalyze a turnaround in consumer habits, with holidays offering what Kraft Heinz CEO Carlos Abrams-River called "volume opportunities" on the company's latest earnings call in late April. Winning holidays is crucial. "Holidays matter... It's like holidays are almost worth double relative to a regular week," Bank of America analyst Peter Galbo told Yahoo Finance. Better weather also plays a key role. For example, if Memorial Day weather isn't very good in much of the country, it can create a "meaningful swing factor" for snacks. If "the weather is bad," Galbo added, "You're not going to have a barbecue, so you don't buy Tostitos or Lays." This snacking slowdown also comes as consumer confidence has fallen sharply, rising in May for the first time all year. At the same time, the US labor market is beginning to show some cracks, with the number of Americans collecting unemployment checks in mid-May standing at the highest in 3.5 years. Uncertainty surrounding tariffs has also weighed on pricing and the consumer outlook. Data from PwC found prices for shelf-stable categories like sauces, pasta, canned beans, and snacks are up 1%-6% over the last week due to the impact of tariffs. Read more: What Trump's tariffs mean for the economy and your wallet From a product packaging and ingredient standpoint, Galbo said he doesn't expect tariffs to impact snacks, which are mostly sourced domestically or from Canada, which is likely exempt as a result of the USMCA. Inflation data out last month showed grocery prices fell 0.4% in April while overall food inflation fell 0.1%, the sharpest drop in both measures since 2020. Still, measures like this year's spike — and then sharp decline — in egg prices show consumers navigating a volatile food pricing environment and acting with caution as they roam the aisles. "Snacking is way more discretionary than we probably all thought it was, as opposed to being a staple," Galbo said. "Which is what these companies were supposed to be." Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
8 hours ago
- CNBC
CNBC's The China Connection newsletter: AI integration gives China supply chains an even greater advantage
Tariffs reminded American businesses how much they still rely on Chinese factories. Now, as more of those factories turn to tech — such as artificial intelligence and robotics — for cost-cutting and quality controls, it's going to be even harder to resist buying from China. AI's potential to transform manufacturing was even highlighted by venture capitalist Mary Meeker over the weekend in the first of her widely followed tech trends reports since 2019. Chinese companies are eager to adopt new technologies, and startup Cybord believes its AI-powered quality control tools will find big buyers in China this year, said CEO Oshri Cohen. Rather than using generative AI, Cybord applies supervised machine learning to identify flaws based on patterns in its manufacturing component database, Cohen said. These flaws include counterfeit, defective and tampered components. Last month, the startup announced it is being integrated into factory management systems from industrial giant Siemens. Cohen, who was previously a vice president of supply chain at Nvidia, expects geopolitical pressures to diversify supply chains, making Chinese factories more competitive. "Factories will go back to China," he said, but in contrast to the past decade, China will then "be a statement of high quality." China installed seven times more robots than the U.S. in 2023, accounting for more than half of the industrial robots installed in the world, according to Stanford University, citing a report from the International Federation of Robotics. Still, automation levels are uneven, with some sectors, such as autos, requiring fewer human workers, while production lines such as apparel, still rely significantly on people running machines by hand. Beijing has ambitious plans to digitalize the country's factories further — in the next five years. China last month released an "action plan" for digital supply chain development by 2030. It called for using AI, blockchain and other technologies in manufacturing and agriculture — including a plan to cultivate 100 digital supply chain leaders. The country already has a head start. "When you think about digital transformations and the use of digital analytics of automation in manufacturing, the Chinese companies are a real force in the world," said Karel Eloot, a Shenzhen-based senior partner at McKinsey. He pointed out that since the World Economic Forum and McKinsey started tracking factory digitalization in 2018, the number of exemplary use cases has climbed to 189, of which 41% are based in China and spread across multiple industries. They include Chinese appliance maker Midea and the Chinese operations of GE Healthcare, AstraZeneca and Schneider Electric. The report noted that some companies, such as the Hisense-Hitachi joint venture in Qingdao, China, are utilizing generative AI to reduce time spent on inefficient meetings, instead directing the next shift of workers to immediate issues. Companies are looking for ways to improve productivity, all the way from the supply chain to the consumer, Eloot said, noting there is a growing "gap between the haves and have-nots" in terms of AI manufacturing integration. "The competitive forces in China are very strong," he said. "Companies compete with each other in a very ruthless way, I would say." The cutthroat nature of that competition was on full display in recent weeks with yet another round of electric car price cuts — largely led by BYD, which already dominates the market and has been aggressively expanding globally. BYD stated in its 2024 annual report that it has begun deploying autonomous mobile logistics robots for manufacturing. The automaker has also invested in robotics companies. "Supply chains have become so efficient and so competitive from a cost perspective ... that if you are to compete, you have to be here" in China, Jens Eskelund, president of the EU Chamber of Commerce in China, told reporters last week in Beijing. He said he's concerned about China's plans to potentially double down on self-sufficiency, which would likely prompt a reaction from its main trading partners. "If you still want to have a workable relationship with your main trading partners, you also need to have a commitment to actually trade," he said. Other car companies, such as Nio and Geely, have also made a major focus of their development. AI applications may even prompt a reorganization of the automotive industry, said Zhou Zipeng, executive general manager at CICC Research Institute. While challenges still exist in data collection and storage, AI is already being used for lithium battery material development and chip manufacturing in China, Zhou said. On the software side, Chinese tech giant Alibaba announced a strategic partnership with business management system giant SAP last week. The wide-ranging agreement — which initially focuses on China — includes Alibaba Cloud support for SAP's supply chain management system, and plans to test integrating Alibaba's Qwen AI model with SAP's applications in China. While it's still early days, generative AI can quickly create a large number of design solutions, shortening the time to a product launch, said Glenn Hou, founding partner of China Insights Consultancy. He added that generative AI can improve the efficiency of equipment maintenance and help businesses absorb technical expertise more quickly. "Looking ahead to the next year, the integration of AI and manufacturing is expected to accelerate," Hou said in Chinese, translated by CNBC. He noted how a combination of data, algorithms and use cases has become a new competitive barrier to entry for businesses. HKEX CEO Bonnie Chan talks about how Hong Kong markets are navigating global market volatility, and the factors that are pulling in mainland Chinese companies & global companies to list in the city. Han Wang, CFO of Zhihu, a social and online content community in China, discusses the company's profitability, growth strategy, and the push for AI integration. Cornell University's Eswar Prasad says global trade volume won't fall but will become a lot more fragmented, especially as the U.S. and China fail to find common ground. U.S. and China trade talks in limbo. Washington indicates U.S. President Donald Trump and Chinese President Xi Jinping could speak this week, but the Chinese Foreign Ministry isn't offering any information. That's after the two countries publicly blamed the other for violating the trade truce reached in mid-May. China's Defense Minister Dong Jun skips Shangri-la Dialogue in Singapore. It was the first absence since 2019, although lower-ranking Chinese officials attended. U.S. Defense Secretary Pete Hegseth called out China's absence, while urging summit attendees to push back on Beijing's military pressure on the region. Leapmotor and Huawei-affiliate Aito deliver record cars in May. The new energy vehicle brands delivered well over 40,000 cars each last month, setting records despite an intensifying industry price war led by market giant BYD. Over the Dragon Boat Festival long weekend, official data showed a 5.7% increase in tourist trips, and a 5.9% rise in related spending from a year ago. Chinese and Hong Kong stocks edged up Wednesday as Asia-Pacific markets tracked a tech rally in Wall Street led by chipmaker Nvidia. Mainland China's CSI 300 added 0.5% while Hong Kong's Hang Seng Index — which includes major Chinese companies — moved up 0.56% as of 2.15 p.m. local time. The benchmark 10-year Chinese government bond yield is at 1.704%. The offshore Chinese yuan last traded 0.04% lower against the greenback at 7.190 against the greenback. — June 9: Trade data, CPI and PPI for May
Business Wire
19 hours ago
- Business Wire
Grindr Appoints Veteran Public Company CFO and Audit Committee Chair Chad Cohen to Board of Directors
WEST HOLLYWOOD, Calif.--(BUSINESS WIRE)--Grindr Inc. (NYSE: GRND), the Global Gayborhood in Your Pocket™, today announced the appointment of Chad Cohen, former Chief Financial Officer of Zillow Group Inc. (Nasdaq: Z) and Adaptive Biotechnologies Corp. (Nasdaq: ADPT) and Founding Partner of Scala Advisors, LLC, to Grindr's Board of Directors as of June 3, 2025. Cohen was also appointed to serve as the Chair of Grindr's Audit Committee. 'We are pleased to welcome Chad to Grindr's Board of Directors,' said Grindr CEO George Arison. 'His broad experience and deep expertise in helping grow successful public companies will be an invaluable asset to Grindr's Board.' A seasoned public company finance executive and board member, Cohen has helped grow several multi-billion dollar technology companies, including multiple leading consumer Internet brands. Prior to his current role, Cohen served as the Chief Financial Officer and Chief Operating Officer for Capella Space, a satellite-based earth observation company; as well as the Chief Financial Officer at Adaptive Biotechnologies, an immune-driven medicine company; and Zillow Group, a leading real-estate marketplace company. During his tenure, Cohen played a pivotal role in leading both Zillow and Adaptive Biotechnologies through their IPOs and scaling both companies through periods of hypergrowth. Additionally, Cohen served as a Board Director and Chair of the audit committee for Vacasa, Inc. (Nasdaq: VCSA), a vacation rental management platform, and for Trupanion, Inc. (Nasdaq: TRUP), a pet insurance company. Cohen was also an Operating Partner at Cota Capital, Assistant Controller at Ticketmaster Entertainment, VP and Assistant Controller at Countrywide Bank, and Supervising Senior Auditor at Ernst & Young. He began his career as a Financial Planning Analyst at Novellus Systems. Today, Cohen serves as Founding Partner and CEO at Scala Advisors, LLC, where he leverages his expertise to advise public and private companies on finance, business operations, and investor relations initiatives. With Cohen's appointment, Director Gary Horowitz stepped down from Grindr's Board. 'We are pleased to welcome Chad to Grindr's Board of Directors,' said Grindr CEO George Arison. 'His broad experience and deep expertise in helping grow successful public companies will be an invaluable asset to Grindr's Board. I look forward to collaborating with Chad as we continue to expand Grindr's capabilities as the Global Gayborhood in Your Pocket. I also want to thank both Gary Horowitz for his dedicated service to Grindr and Nathan Richardson for serving as our Audit Committee Chair during our first three years as a public company, and I'm happy that Nathan is continuing on the Board and the Audit Committee.' 'Grindr has established itself as the premier social platform and market leader in dating apps for the gay community. Its outstanding business performance and strong financial profile is a testament to its leading market position, and I am thrilled to be joining the Board of Directors,' said Cohen. 'I look forward to providing my expertise and support to George and the management team to advance Grindr's mission.' About Grindr With more than 14.5 million average monthly active users, Grindr has grown to become the Global Gayborhood in Your Pocket™, on a mission to make a world where the lives of our global community are free, equal, and just. Available in 190 countries and territories, Grindr is often the primary way for its users to connect, express themselves, and discover the world around them. Since 2015, Grindr for Equality has advanced human rights, health, and safety for millions of LGBTQ+ people in partnership with organizations in every region of the world. Grindr has offices in West Hollywood, the Bay Area, Chicago, and New York. The Grindr app is available on the App Store and Google Play.
