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Connecticut moves to crack down on bottle redemption fraud

The bill increases fines up to $2,000, limits daily redemptions to 4,000, and mandates licensing and recordkeeping to combat $11.3 million in distributor losses, officials said.

  • On Wednesday, the Connecticut Legislature passed Senate Bill 299 35 to 1, expected to clear the House and go to Gov. Ned Lamont.
  • After Connecticut raised its bottle deposit to 10 cents in 2024, officials say out-of-state returns surged, causing distributors to cover $11.3 million losses including Star Distributors' more than $2 million.
  • The bill would increase first- and third-offense fines, require redemption centers licensed by the Department of Energy and Environmental Protection to keep records over 1,000, and lower the daily limit to 4,000.
  • Local police would be empowered to pursue out-of-state violators, but redemption center owners warned that the $2,500 annual licensing fee and volume caps threaten small operators.
  • Officials say there's no way to track which of roughly 2 billion containers redeemed last year were from out of state, citing technological challenges and pushback on Connecticut-specific barcode labeling.
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Connecticut moves to crack down on bottle redemption fraud

It’s a scheme made famous by a nearly 30-year-old episode of the sitcom Seinfeld. Hoping to earn a quick buck, two characters load a mail truck full of soda bottles and beer cans purchased with a redeemable 5-cent deposit in New York, before traveling to Michigan, where they can be recycled for 10 cents apiece.

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The CT Mirror broke the news in on Thursday, February 26, 2026.
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