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Container-deposit legislation (also known as a container-deposit scheme, deposit-refund system or scheme, deposit-return system, or bottle bill) is any law that requires the collection of a monetary deposit on beverage containers (refillable or non-refillable) at the point of sale and/or the payment of refund value to the consumers. When the container is returned to an authorized redemption center, or retailer in some jurisdictions, the deposit is partly or fully refunded to the redeemer (presumed to be the original purchaser). It is a deposit-refund system.
Governments may pass container deposit legislation for several reasons, including, for example:
Deposits that are not redeemed are often kept by distributors or bottlers to cover the costs of the system (including handling fees paid to retailers or redemption centers to collect, sort, and handle the containers) or are escheated to the governmental entity involved to fund environmental programs. Studies have shown that container-deposit schemes are generally very successful in practice, with return rates commonly reaching up to 90% or more.