Trending...
- Talaria E-bike China Source Cuts Talaria Sting MX5 Pro Pricing by $700 - 135
- City of Long Beach Issues Rain Advisory Due to Recent Showers
- Long Beach to Launch Time Capsule Honoring America's 250th Anniversary as Part of 908 Day Celebration
LOS ANGELES, Jan. 7, 2022 /PRNewswire/ -- Recycling scams are costing California consumers potentially hundreds of millions of dollars in nickel and dime deposits stolen through fraudulent bottle and can refunds, Consumer Watchdog said today.
"Experts and insiders point to fraud rings that consist of crooked recycling centers and recycling processors as the source, along with an antiquated paper system of checks and balances run by the state that is easily fooled because it has not been fully digitized," the group said in its latest investigative report on the bottle deposit system's dysfunction, "Cash For Trash: Recycling Fraud in California."
Read the report here.
The report points to the need for a modern, automated bottle deposit system, like those in other bottle deposit states. This year California's Assembly will take up legislation already passed by the state Senate-- SB 38 (Wieckowski) -- to establish such a system run and managed by the beverage companies.
"California's bottle deposit program is run largely on a recycler honor system to claim payments from the state for bottle and can redemption," the report finds. "This reimbursement system uses state-set formulas easily manipulated by unscrupulous recyclers and waste haulers with little sophisticated scrutiny by regulators. Not a single other bottle deposit system in the continental United States emulates and copies California's. Instead, other bottle deposit systems put the responsibility onto the beverage industry to run bottle deposit programs and give them a stake in it. This helps to eliminate fraud because beverage producers lose money if they allow it."
"Fraud occurs when deposit containers are recycled more than once; when recycling centers and processors that buy materials from them for resale fudge the record-keeping, including the weight of loads used to calculate state payments; when out-of-state deposit containers on which no deposit was ever paid are redeemed; and when California non-deposit beverage containers are passed off as deposit beverages for state deposit refunds," the report continues.
More on The Californer
Among the report's recommendations:
The report describes common fraud tactics including:
"The state's recycling regulator, CalRecycle, is clearly unable to effectively and thoroughly contain fraud," said the report's author and advocate Liza Tucker. "It also appears that Governor Newsom has no plan to shut down fraud, and the Administration needs to come up with one. The Governor has made it clear that he wants to build a circular economy that maximizes recycling to minimize waste, cut pollution, and save energy. Massive fraud in the system is only getting in the way of that vision."
More on The Californer
For more on the dysfunction of the bottle deposit system, see Consumer Watchdog previous reports:
Waste Haulers: Square Peg In the Circular Economy
https://www.consumerwatchdog.org/report/waste-haulers-square-peg-circular-economy
Trashed: How California Recycling Failed And How To Fix It
https://www.consumerwatchdog.org/report/trashed-how-california-recycling-failed-and-how-fix-it
Half A Nickel: How California Consumers Get Ripped Off On Every Bottle Deposit They Pay
https://www.consumerwatchdog.org/report/half-nickel-how-california-consumers-get-ripped-every-bottle-deposit-they-pay
SOURCE Consumer Watchdog
Related Links
http://www.consumerwatchdog.org
"Experts and insiders point to fraud rings that consist of crooked recycling centers and recycling processors as the source, along with an antiquated paper system of checks and balances run by the state that is easily fooled because it has not been fully digitized," the group said in its latest investigative report on the bottle deposit system's dysfunction, "Cash For Trash: Recycling Fraud in California."
Read the report here.
The report points to the need for a modern, automated bottle deposit system, like those in other bottle deposit states. This year California's Assembly will take up legislation already passed by the state Senate-- SB 38 (Wieckowski) -- to establish such a system run and managed by the beverage companies.
"California's bottle deposit program is run largely on a recycler honor system to claim payments from the state for bottle and can redemption," the report finds. "This reimbursement system uses state-set formulas easily manipulated by unscrupulous recyclers and waste haulers with little sophisticated scrutiny by regulators. Not a single other bottle deposit system in the continental United States emulates and copies California's. Instead, other bottle deposit systems put the responsibility onto the beverage industry to run bottle deposit programs and give them a stake in it. This helps to eliminate fraud because beverage producers lose money if they allow it."
"Fraud occurs when deposit containers are recycled more than once; when recycling centers and processors that buy materials from them for resale fudge the record-keeping, including the weight of loads used to calculate state payments; when out-of-state deposit containers on which no deposit was ever paid are redeemed; and when California non-deposit beverage containers are passed off as deposit beverages for state deposit refunds," the report continues.
More on The Californer
- Mckenna Bridger on Becoming Violet Adams in Nightmare
- Congressman Chuck Edwards (NC-11) Presents ReadyCommunities Partnership 2026 National Service Award to Local Businessman / US Air Force Veteran
- Cress Creeks Farm Opens Fall Corn Maze and Baby Lamb Hayride Experience in Ellijay, Georgia
- Allstream Energy Partners Nominated in Multiple Categories for Fast Company's Best Workplaces for Innovators
- Jeff Stanescu Construction Leadership • Project Delivery • Dispute Resolution
Among the report's recommendations:
- Switch to an Extended Producer Responsibility System via passage of SB 38 (Sen. Bob Wieckowski) to institute a modernized system at big supermarkets and recycling centers featuring Reverse Vending Machines and Bag Drop Machines that can screen containers for refund eligibility.
- Require processors to pay recycling centers for all scrap, CRV, processing and administrative payments by check or electronic transfer. No cash.
- Require all recycling centers to use electronic record-keeping and submit receipts and transaction logs electronically to the agency with each load, along with amounts of scrap material purchased and its value in each load.
- Require all recycling centers to ID and report customers with large loads to CalRecycle daily to flag for investigation those bringing in unusually large quantities of containers for redemption.
- Set up an electronic tracking system requiring processors to report to CalRecycle all CRV loads bought, sold, and shipped to end users and to report inventory on a monthly basis.
- Require processors to report to CalRecycle three days before exports of any CRV material so that CalRecycle can inspect for non-CRV material prior to shipping.
The report describes common fraud tactics including:
- Repeatedly weighing the same truck carrying deposit containers for recycling. By weighing the same truck repeatedly, recyclers and processors that buy the materials can claim state payments for the California Redemption Value (CRV) on deposit containers more than once.
- Recycling the same containers repeatedly. Unscrupulous processors can purchase loose containers from recycling centers, and instead of baling them for sale, roll the containers off the truck and make bags of containers taken by individuals to recycling centers all over again.
- False documentation of "phantom" containers. Processors involved with recycling centers can concoct "phantom" containers that exist only on paper and claim payment from the state.
- Doctoring weight tickets. Recycling centers can doctor weight tickets by claiming additional weight that does not exist on their reports to CalRecycle in order to boost the amount of CRV reimbursement.
- Padding the load with non-CRV containers – Recycling centers can buy non-CRV glass containers such as empty wine bottles or manufacturer rejects, break them up, and mix them in with CRV bottles to claim the whole load as deposit-carrying containers for state reimbursement.
- Importing non-CRV containers from out of state – Containers are brought in illegally from states and countries such as Arizona, Nevada, and Mexico for redemption by organizers of rackets.
"The state's recycling regulator, CalRecycle, is clearly unable to effectively and thoroughly contain fraud," said the report's author and advocate Liza Tucker. "It also appears that Governor Newsom has no plan to shut down fraud, and the Administration needs to come up with one. The Governor has made it clear that he wants to build a circular economy that maximizes recycling to minimize waste, cut pollution, and save energy. Massive fraud in the system is only getting in the way of that vision."
More on The Californer
- Long Beach: City Recaps Preparedness and Response Efforts on Peninsula Following Hurricane Marie Impacts
- Ensurance Introduces CATE, Its Controlled Access Trust Engine for Insurance Shopping
- Best Lemon Law Attorney in Rowland Heights CA
- Thursday's Hair Solutions Celebrates Alopecia Awareness Month This September
- Responsive Web Designs Services in San Diego Drive Digital Growth
For more on the dysfunction of the bottle deposit system, see Consumer Watchdog previous reports:
Waste Haulers: Square Peg In the Circular Economy
https://www.consumerwatchdog.org/report/waste-haulers-square-peg-circular-economy
Trashed: How California Recycling Failed And How To Fix It
https://www.consumerwatchdog.org/report/trashed-how-california-recycling-failed-and-how-fix-it
Half A Nickel: How California Consumers Get Ripped Off On Every Bottle Deposit They Pay
https://www.consumerwatchdog.org/report/half-nickel-how-california-consumers-get-ripped-every-bottle-deposit-they-pay
SOURCE Consumer Watchdog
Related Links
http://www.consumerwatchdog.org
Filed Under: Business
0 Comments
Latest on The Californer
- Build a Stronger Online Presence with Strategic Web Design & Development
- California: What they are saying: National leaders and lawmakers celebrate Governor Newsom's signature on landmark child safety chatbot and social media laws
- California: Governor Newsom announces appointments 9.10.26
- Shelter Structures America makes European debut at TEMPOR EXPO 2026 in Fulda, Germany
- 80th Annual East Los Angeles Mexican Independence Day Parade and Festival
- Attn: ALL BUSINESSES: This very effective Marketing Math could help you increase your Sales & Profit
- Pervaziv AI Launches Cortex Cloud, Bringing Durable Managed Execution to Enterprise AI
- HydroExcavation.com Relaunches With Exclusive Local Service Areas and Dedicated Hydrovac Manufacturer Directory
- Long Beach Flood Water Damage Provides Local Water Damage Restoration Services to Long Beach, CA
- Sky Quarry Enters a Powerful New Chapter: Refinery Restart Emminent, Nevada Oil Initiative and Visibility Put (NAS DAQ: SKYQ) in the Spotlight
- OneVizion Launches Vera AI, Bringing Connected Operational Context to Infrastructure Teams
- DJ HOTMESS Road To Los Angeles Nightlife
- P-Wave Press Announces Pushing the Wave 2025 by L.A. Davenport
- DONGSHENG Titanium Recycling: Promoting a Closed-Loop Cycle for High-End Titanium Materials
- Angélica Dueñas Kicks Off 2026 General Election Campaign for CA's 29th Congressional District
- Fintech App Development Trends Shaping Hyderabad's Technology Industry in 2026
- Electric Utility Vehicle with Hydraulic Dump Bed for Farms and Material Handling
- Greyhaven Group Introduces AI-Ready Infrastructure Services for Growing Businesses
- Rural California Energy Consultancy Unlocks Remote Sites for Vacation Rentals and ADUs
- Fun and Easy Health Introduces Acupuncture Meridian Wellness Education in Murrieta