Buzz
“The Bottle Deposit,” a unique two-part episode from Seinfeld, first aired on May 2, 1996, and quickly became a television landmark. In this episode, Kramer and Newman embark on a doomed journey to Michigan in a mail truck filled with bottles and cans, hoping to cash them in for 10 cents each and make a fortune. Why is the bottle deposit in Michigan so high?
How long has Michigan implemented the 10-cent deposit?
The 10-cent deposit dates back to the Michigan Beverage Containers Law, also known as the Bottle Bill, introduced in 1976. Here's how it functions: Consumers pay an extra 10 cents when buying bottled or canned drinks, which is refunded once the container is returned. The initiative aims to reduce litter, promote recycling, and fund environmental programs.
Does a higher deposit encourage more recycling?
While a five-cent difference might seem insignificant, Michigan and Oregon stand out by offering a 10-cent deposit compared to the five-cent refund elsewhere. This higher deposit is a key factor behind Michigan's highly successful recycling program.
Tracking cans and bottles brought in from out of state is challenging, but Michigan’s program boasted a return rate of over 90 percent during its first four decades. Although the return rate has decreased since the pandemic, it still stands at around 75.6 percent, which is far better than states like Massachusetts with only a 38 percent return rate for their five-cent deposit, or states without refunds where the return rate is just 28 percent.
This decline in return rates has prompted lawmakers to propose a range of changes to Michigan’s bottle return system, including restrictions on the types of bottles eligible for recycling and limiting the hours during which returns can take place.
Is it realistic for Kramer and Newman to have successfully pulled off their bottle return scheme?
Could Kramer and Newman have managed to pull off their bottle return stunt? It's possible, but it would have taken a lot of effort. They would likely need to visit numerous stores to redeem their cans. According to Michigan law, retailers are only required to return $25 worth of deposits per person per day. While they can return larger sums at their discretion, the $25 limit applies to each individual. With $500 worth of cans between them, Kramer and Newman could have ended up visiting 20 different stores.
Has anyone ever attempted this scam?
Absolutely! In 2007, Michigan State Police launched Operation Can Scam. While the name might not win any awards for creativity, it led to the arrest of 10 grocers and conspirators involved in the scam. The scheme mirrored Kramer and Newman's idea, but on a much larger scale. Smugglers in Ohio collected millions of cans, sold them to grocers at a discount, and the grocers redeemed them for the full 10-cent deposit, making a profit.
That is, until law enforcement caught onto the scam. During the 10 arrests, authorities uncovered millions of cans and $500,000 in cash. The director of the Michigan State Police stated that similar scams cause the state to lose $10 to $13 million annually.
What happens to the unclaimed dimes?
Despite a very high percentage of containers being returned, unclaimed deposits still accumulate into eight-figure amounts each year. Three-quarters of this money is directed to the Cleanup and Redevelopment Trust Fund, which supports environmental programs, while the remaining portion is retained by the retailers.
