News & Blog

September 13, 2011

Hilex Poly and ChicoBag Reach Settlement

Hilex Poly and ChicoBag Reach Settlement over False Marketing Claims
Settlement a win for consumers and transparency in the marketplace

Hartsville, S.C. – Hilex Poly Company LLC, a leading manufacturer and recycler of plastic bags, films and wraps, and ChicoBag reached a settlement agreement resolving a lawsuit in which Hilex Poly contended that ChicoBag was making false marketing claims. The agreement resulted in an undisclosed settlement payment to Hilex Poly.

Earlier this year, Hilex Poly filed a complaint in U.S. District Court of the District of South Carolina to stop the ongoing use of false and misleading statements about plastic retail bags disseminated on ChicoBag’s website and in other written materials.

Prior to the settlement, ChicoBag revised 11 of 16 claims on their “Learn the Facts” webpage. In addition, as part of the settlement, ChicoBag agreed to that it would not use archived EPA websites containing outdated data and provide full citation with both sources and dates for any facts or statistics included in company materials. In addition, the settlement outlines covenants that will guide conduct by the parties in future marketing communications after the agreement.

“This settlement is a win for consumers. The use of false and misleading statements is injurious to the marketplace, and this settlement ensures that facts are accurate,” said Hilex Poly Vice President of Sustainability, Mark Daniels. “We welcome a vigorous and honest debate about the use of plastic carryout bags. While all parties are entitled to their own opinions, Hilex Poly believes that everyone should be careful to be accurate in the facts presented. Hilex Poly remains committed to partnering with all stakeholders, including ChicoBag, to promote the EPA's recommendations to ‘Reduce, Reuse and Recycle’ plastic bags.”

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About Hilex Poly
Based in Hartsville, S.C., Hilex Poly is the nation’s largest plastic bag manufacturer and operates the largest closed-loop recycling facility in the United States. Hilex Poly’s Bag-2-Bag recycling program was the first closed loop recycling program to introduce plastic bag recycling programs at supermarkets and retailers that also rewarded customers with high recycled content shopping bags. Hilex Poly operates the nation’s largest plastic bag recycling plant, located in North Vernon, Ind. For more information on Hilex Poly’s sustainability efforts, plastic bag recycling or the Bag-2-Bag program, visit http://www.hilexpoly.com/.