Costco and coffee company fined over plastic coffee pods

FRESNO, Calif. (KFSN) -- The Fresno County District Attorney announced a $500,000 settlement Monday with Costco and the San Francisco Gourmet Coffee Company over sales of plastic coffee pods.

24 other district attorneys offices were also part of that settlement.

It was based on allegations that the companies sold plastic coffee pods labeled with misleading marketing claims including statements related to biodegradability.

The problem is California law imposes an outright ban on the sale of plastics labeled with that similar language.

Now Costco and JBR Inc., the owner of the San Francisco Gourmet Coffee Company, will have to pay half a million dollars in penalties and costs.