Virgin Islands Government Sues Coca-Cola and PepsiCo Over Plastic Pollution

The government of the U.S. Virgin Islands has filed a lawsuit against beverage giants Coca-Cola and PepsiCo, accusing the companies of misleading consumers about the environmental impact of their products and contributing significantly to the territory’s growing plastic waste crisis.

The 42-page civil suit, filed in April and reported by the Virgin Islands Consortium, alleges that both companies – along with their local manufacturers and distributors – have engaged in deceptive trade practices by promoting single-use plastic bottles as recyclable, while failing to support or implement effective waste management solutions in the region.

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

The complaint claims that Coca-Cola and PepsiCo have overstated the recyclability of their packaging and neglected to take responsibility for the resulting environmental damage. It also accuses the companies of lobbying to weaken global environmental regulations, despite publicly presenting themselves as champions of sustainability.

Plastic waste is a particularly acute problem in the Virgin Islands, where the territory’s two landfills are reportedly at or near full capacity. The suit describes the pollution as “nearly impossible to fully clear from public areas,” and highlights how the lack of effective recycling infrastructure has left the region overwhelmed.

In 2022, Coca-Cola reported using less than 14% recycled plastic in its packaging, while PepsiCo’s usage was even lower at just 6%, according to figures cited in the lawsuit.

The government is asking the court to bar the companies from continuing deceptive practices, and is seeking financial penalties for violating local consumer protection laws. Officials also warn that the growing plastic problem could jeopardize the Virgin Islands’ tourism-driven economy, which accounts for roughly 60% of the territory’s GDP.

Plastic pollution not only degrades the natural landscape but also harms marine life and presents serious public health risks. Research has increasingly linked microplastics – tiny plastic fragments that can enter the food chain – to long-term health concerns including cancer, cardiovascular disease, and cognitive disorders.

Though both Coca-Cola and PepsiCo have made high-profile sustainability moves, such as switching to fiber-based packaging and investing in cleaner transport, the Virgin Islands’ legal action suggests that those efforts fall short of what’s needed to address the scale of the crisis.

The case adds to a growing wave of global scrutiny over corporate greenwashing and the environmental costs of single-use plastic.