Reynolds Consumer Products Settlement, Hefty “Recycling” Bags Were Not Recyclable, Arizona Consumers Can Claim Restitution by Oct. 1, 2026
Arizona Attorney General Kris Mayes filed suit against Reynolds Consumer Products — the maker of Hefty bags — in August 2025, alleging the company falsely marketed its transparent blue and clear bags as suitable for recycling when Arizona facilities do not accept them. Reynolds agreed to pay $212,000 to resolve the allegations. Reynolds admits no wrongdoing, but the settlement requires nationwide packaging changes and opens a restitution window for Arizona consumers. The deadline to file a complaint for restitution is October 1, 2026.
Quick Facts
- Lawsuit type: State AG consumer fraud enforcement action (Arizona Consumer Fraud Act)
- Defendant: Reynolds Consumer Products Inc. and Reynolds Consumer Products LLC
- Current status: Consent judgment submitted to Maricopa County Superior Court on Feb. 13, 2026 — pending final approval
- Who may be affected: Arizona residents who purchased Hefty-branded “Recycling” bags, or transparent blue or clear bags, in the state
- Total settlement amount: $212,000 — comprising $30,000 in consumer restitution, $157,000 to the state, and $25,000 in costs and attorneys’ fees
- Claim deadline: October 1, 2026
- How to file: Submit a complaint through the Arizona Attorney General’s Office at azag.gov
Current Status & What Happens Next
Arizona Attorney General Kris Mayes submitted the consent judgment to the Maricopa Superior Court for approval on Feb. 13, 2026. The settlement is pending judicial approval. Once the court approves it, Reynolds must pay the $30,000 consumer restitution fund within 10 days.
Consumers who bought the bags and found their communities did not accept them for recycling must file a complaint with the Arizona AG’s Office before Oct. 1, 2026 to be considered for restitution.
There is no opt-out or objection process available to individual consumers — this is a state enforcement action, not a private class action.
What the Lawsuit Alleges
Reynolds has sold transparent “recycling bags” under the Hefty brand since at least 2019. The company advertised the bags as “ideal for collecting recyclable materials” without clarifying that the bags themselves are not recyclable in Arizona cities and towns, including Phoenix.
The packaging also included an image of a blue recycling truck with a “chasing arrows” recycling symbol — a widely recognized mark indicating a product is recyclable.
AG Mayes alleged that when a consumer places materials inside the bag and recycles it, the contents most often end up in a landfill. The bags can also become entangled in recycling facility sorting equipment, forcing facility shutdowns.
Mayes accused Reynolds of profiting from Arizonans’ desire to protect the environment. The complaint covers every version of the packaging Reynolds has used since 2019, each of which the AG’s office alleges violated the Arizona Consumer Fraud Act.
Who Could Be Included
Arizona residents who purchased Hefty-branded recycling bags or transparent blue or clear bags in the state are eligible to file a restitution complaint. Reynolds sold the bags through a variety of channels, including online retailers, big box stores, and grocery stores throughout Arizona.
Consumers outside Arizona are not covered by this settlement. However, a separate private class action — Gudgel et al. v. Reynolds Consumer Products Inc. — previously resolved similar claims nationally. That $3 million federal class action settlement covered U.S. consumers who purchased Hefty and/or Great Value brand recycling bags between July 20, 2018, and August 30, 2023. The claim deadline for that case has passed.
Settlement Details
Consumer restitution fund: $30,000, distributed to qualifying Arizona consumers after the claim review is complete and the court approves the consent judgment.
How to file a restitution complaint:
- Visit the Arizona Attorney General’s Office website at azag.gov
- File a consumer complaint referencing the Hefty recycling bag settlement
- Submit your complaint before October 1, 2026
AG Office contact information:
- Phoenix: 602-542-5763
- Tucson: 520-628-6648
- Outside metro areas: 800-352-8431
- Email: [email protected]
Proof of purchase: The AG’s Office has not specified a requirement — contact the office directly to confirm documentation needed.
Nationwide packaging changes: As part of the settlement, Reynolds must redesign its packaging across the country. The redesign will remove any misleading images implying the bags can be used for curbside pickup or placed in municipal recycling bins, and will clearly state: “These Bags Are Not Recyclable.” Reynolds is also prohibited from selling “recycling” bags unless they are accepted at a substantial majority of Arizona recycling facilities.
Prior Cases and Broader Context
This is not Reynolds’ first legal confrontation over these products. The $3 million federal class action settlement in Gudgel et al. v. Reynolds Consumer Products resolved nearly identical claims nationally and received final court approval on November 15, 2023. That settlement paid class members $2 per purchased product with no proof of purchase required, up to $12 without a receipt.
The Arizona settlement comes nearly six months after consumer fraud lawsuits were filed in three states. Connecticut’s Attorney General filed a similar suit in June 2022, alleging Reynolds violated the Connecticut Unfair Trade Practices Act. That case remains pending, with the parties scheduled for mediation on March 13, 2026. California Attorney General Rob Bonta filed suit against Reynolds in October 2025, with a case management conference scheduled for March 18, 2026.
The Arizona settlement is notable because Reynolds agreed to modify its packaging to warn consumers that, despite the product’s appearance and the company’s prior claims, the product is not recyclable — a rarely seen outcome in consumer protection settlements of this type.
For a broader look at how false advertising claims against food and consumer product companies develop, see our article on the Florida’s Natural Grapefruit Juice class action. For a recent example of a consumer product false advertising settlement where claims are still open, see our coverage of the Balance of Nature $9.95M settlement.
FAQs
Is this a class action lawsuit?
No. This is a state enforcement action brought by the Arizona Attorney General under the Arizona Consumer Fraud Act, not a private class action. Individual consumers cannot join or opt out — but eligible Arizona residents can file a complaint to seek restitution.
Has a settlement been approved?
The consent judgment was submitted to Maricopa County Superior Court on Feb. 13, 2026, and is pending judicial approval. Reynolds has agreed to the terms but the court has not yet issued final approval as of March 5, 2026.
Who is eligible for restitution?
Arizona residents who purchased Hefty-branded recycling bags, or transparent blue or clear Hefty bags, anywhere in Arizona — including online, at grocery stores, or at big box retailers.
How do I file a claim?
File a consumer complaint directly with the Arizona Attorney General’s Office at azag.gov before October 1, 2026. You can also call 602-542-5763 (Phoenix) or 800-352-8431 (outside metro areas).
How much will I receive?
The total restitution pool is $30,000. Individual payment amounts depend on how many qualifying complaints are submitted and how the fund is distributed. Final payment amounts have not been announced.
I live outside Arizona. Can I still file?
No. This settlement only covers Arizona consumers. The earlier national class action settlement (Gudgel v. Reynolds) is closed — its claim deadline has passed.
Will Reynolds change its packaging?
Yes. As part of the settlement, Reynolds must redesign its packaging nationwide to remove recycling imagery and state clearly that the bags are not recyclable. The company cannot resume marketing any bags as recyclable unless a substantial majority of Arizona recycling facilities accepts them.
What if the court does not approve the settlement?
The Arizona AG’s Office retains the right to reopen the case if Reynolds does not comply with settlement terms. If the court declines to approve the consent judgment, the litigation could continue.
By AllAboutLawyer.com Staff | Last Updated: March 5, 2026
This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. For advice regarding a particular situation, consult a qualified attorney.
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
Read more about Sarah