Arizona settles consumer fraud case over nonrecyclable Hefty trash bags

PHOENIX (CN) — Reynolds Consumer Products Inc. will pay more than $200,000 to the state of Arizona under a settlement agreement released Monday over claims the company misrepresented plastic waste bags as “recyclable” when they are not. 

Hefty, best known for selling trash bags, has sold transparent "recycling bags” since at least 2019. In an August 2025 lawsuit, state Attorney General Kris Mayes argues the products are largely nonrecyclable in Arizona and instead can become tangled in sorting equipment and even shut down entire state recycling facilities.

"Companies should not be able to exploit Arizonans' well-meaning desire to protect the environment," said Mayes. "We won't allow companies to mislead consumers and imply products sold in our state are recyclable unless they can actually be recycled in Arizona."

Mayes accused Reynolds of profiting off Arizonans’ desire to do the right thing. The company advertised its bags as “ideal for collecting recyclable materials” without clarifying that the bags themselves aren't actually recyclable, she said. Mayes said when a consumer recycles the bag, the contents most often end up in a landfill instead; the bags could also become entangled in recycling facility equipment, forcing facility shutdowns. 

Reynolds admits no wrongdoing in the settlement, which was dated Feb. 13 and is still pending before a state judge.

If approved, Reynolds would be prohibited from selling recycling bags unless they are accepted at a “substantial majority” of Arizona recycling facilities.

Reynolds must also redesign the packaging of its transparent, clear and blue bags to remove any misleading images implying the bags can be used for curbside pickup or placed in municipal recycling bins. Language on the website must educate consumers about the limited availability of bagged recycling pickup and make clear that the bags are to be used only in participating municipalities. 

The redesign will be implemented nationwide and include removing recyclable contents from images of the clear or blue bags and clearly stating on the packaging: "These Bags Are Not Recyclable."

Reynolds will also pay $30,000 in consumer restitution within 10 days of the settlement taking effect and pay $157,000 to the state for Arizona Consumer Fraud Act violations. Finally, Reynolds will pay $25,000 to cover the state’s attorney’s fees. 

Though Reynolds changed the messaging on its packaging beginning in 2019, Mayes says every version so far has violated the Arizona Consumer Fraud Act.

In 2019, “perfect for all your recycling needs” and “transparent for quick sorting and curbside identification” were written on every package. The packaging also included an image of a blue recycling truck with a “chasing arrows” recycling symbol, a recognizable mark indicating a product is recyclable. Under that symbol read: “developed for use in municipal recycling programs where applicable.”

Reynolds made more changes to its packaging and labeling after other states reached similar settlements, but the company had never removed the image of the bag containing recyclables or explicitly stated on the front of its packaging that the bags are not recyclable.

Despite the textual clarification, Mayes says the use of the common recycling logo, called the Möbius loop, still implies the product is entirely recyclable and therefore is deceptive to consumers. 

Mayes asks that Arizona consumers who purchased Reynolds' "Recycling" bags or transparent blue or clear bags file a complaint here before Oct. 1, 2026, to be considered for restitution.

Reynolds has not replied to a request for comment.

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