Recylers use various schemes to defraud the system, including weighing items twice, importing materials from other states and doctoring weight tickets.
California’s recycling system is rampant with fraud, potentially costing consumers as much as $200 million a year in stolen nickel and dime deposits, a new study alleges.report from Consumer Watchdog says past investigations by the State Auditor and a local news outlet show $40 million to $200 million dollars in deposit money is stolen each year from California’s beverage container recycling program through padded loads, falsified weights tickets and other tactics.
Liza Tucker, who authored the Consumer Watchdog report, said the schemes were compiled from fraud convictions and industry insiders who observed wrongdoing taking place in California’s recycling programs. for fabricating weight tickets and other violations in a 2018 fraud case. When civil penalties, costs, and interest were factored in, the total came to $541.3 million. CalRecycle and the California Department of Justice settled the case in September 2021 for just $34 million.
CalRecycle, working through beverage container pilot programs, is pursuing new technologies to increase consumer access while reducing opportunities for fraud, he said.
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