Minnesota AG wins settlement against Walmart and Reynolds over ‘recycling’ bags that weren’t recyclable

Walmart stores in Minnesota will not be allowed to sell plastic trash bags labeled “recycling” that were not in fact recyclable, as part of a lawsuit settlement, Minnesota Attorney General Keith Ellison announced Thursday.

In a news release, Ellison warned companies against “greenwashing” their products and said he’s pleased that Walmart and bag production company Reynolds Consumer Products have agreed to stop selling and marketing the bags in question for two and a half years as part of the settlement.

“Any other companies thinking about greenwashing their products to market them deceptively to Minnesotans should know by now that I will not hesitate to hold them accountable under the law,” Ellison said.

Ellison sued Walmart and Reynolds in June 2023 in Ramsey County, alleging that the companies defrauded and deceived consumers by selling Reynolds-made trash bags that showcased the word “recycling” on the boxes even though the bags themselves weren’t recyclable. The bags in question were Reynolds’ Hefty brand “recycling bags” and the Walmart Great Value brand “recycling drawstring bags,” also made by Reynolds.

Ellison said in the release that the bags “rendered unrecyclable all materials that Minnesotans put inside of them — even items that would otherwise be recyclable,” adding that the bags had the potential to cause machines at a material recovery facility in Minnesota to malfunction and potentially cause a fire.

After the two-and-a-half-year ban on selling the bags, Walmart and Reynolds will be allowed to sell them again, but only if they clearly display text on the packaging that reads, “These bags are not recyclable.”

In a prepared statement, a spokesperson for Reynolds said the company believes the lawsuit claims “lack merit” and that the company is “pleased to put this matter behind us.”

“We remain committed to our sustainability mission to develop innovative products and solutions that simplify daily life and protect the environment,” the spokesperson said.

Walmart did not immediately return requests for comment on Thursday.

As part of the settlement, Walmart must pay $59,000, which is the amount of profit in Minnesota from selling the bags, and $25,000 in attorney fees. Reynolds, meanwhile, must pay close to $133,000 total, which factored in roughly $54,000 of profit for Reynolds, according to the settlement document.