Deposit-Return Charges

Deposit-return charges are fees paid by consumers, typically for containers of liquid or powdered substances. Companies hope to encourage consumers to recycle the containers by repaying the deposit-charge when they are returned to the retailer, who is asked to administer the system of fees [Page 443]on behalf of the manufacturer. The system is particularly useful when the containers are of comparatively high value compared to the contents, as is the case with many carbonated soft drinks in the developing world, when consumers frequently prefer to take away the product in plastic bags for a slightly lower cost and leave the deposit-bearing item in the hands of the retailer, who is thereby able to achieve a modest profit. The system is also important when the containers ...