Province fines Coquitlam-based KMS Tools $28,300 for repeated recycling law violations

[This article has been updated with comments from Stan Pridham, the owner of KMS Tools.]

Coquitlam’s KMS Tools has been fined $28,300 for failing to comply with the province’s recycling regulations – marking the second penalty against the company in two years.

In a May 8 determination, the B.C. Ministry of Environment fined KMS Tools for continuing to distribute packaging and paper products without an approved extended producer responsibility (EPR) program in place.

The violation spanned from November 2022 to May 2024, despite repeated warnings and a previous fine issued in 2023 for similar non-compliance.

“This type of contravention undermines the basic integrity of the overarching regulatory regime and significantly interferes with the Ministry’s capacity to regulate,” said Kelly Mills, a director under the Environmental Management Act, in the decision document.

Under the Recycling Regulation, producers — including manufacturers, distributors, and retailers — must either develop an EPR plan for how their packaging and printed paper (PPP) will be collected and recycled, or register with an approved stewardship agency that handles these obligations on their behalf. Recycle BC is currently the only agency in B.C. with an approved PPP plan.

The ministry found KMS Tools did neither, and was ineligible for exemptions typically granted to smaller producers. According to the decision, the company had more than $1 million in annual revenue in B.C., produced more than one tonne of packaging waste, and operated multiple retail locations – all disqualifying it from small producer status.

The company operates nine retail locations across B.C., including its flagship store in Port Coquitlam, and five others in Alberta. It also runs an online store, a distribution centre, and an auto parts business under the “KMS C.A.R. Parts” banner.

KMS Tools’ $28,300 fine reflects a $10,000 base penalty, plus aggravating factors that include repeat violations, deliberate non-compliance, and an estimated $8,800 in avoided recycling fees.

Ministry officials noted that KMS Tools “made no effort” to work with Recycle BC or to comply through alternative means, despite being given detailed instructions as early as 2021.

KMS Tools argued that compliance was “impossible” and said the ministry had failed to provide clear guidance relevant to its business model. 

A representative also claimed the company was being unfairly targeted, stating that most of its competitors were not penalized and that the regulation was inconsistently enforced. 

However, those same arguments were rejected in a previous Environmental Appeal Board (EAB) ruling last year, which upheld a $19,000 fine issued to KMS Tools for non-compliance in 2023. 

In its decision, the EAB found that KMS Tools presented no persuasive evidence that compliance was impossible and noted the company had received “repeated” instructions on how to fulfill its obligations, including contact information for Recycle BC and the option of submitting its own EPR plan. Instead, the company pursued a campaign to challenge the regulation, claiming it was being unfairly targeted and that the law was too vague for businesses like theirs to follow.

“There was no evidence to show that [KMS Tools] was officially or unofficially exempted from the regulation at any time,” the EAB stated. “Short of continuing to make assertions concerning why it should be exempted and why it was difficult to comply, [KMS Tools] did not, in fact, make any attempt to work with Recycle BC.”

The ministry said that KMS Tools’ insistence that it could not comply – despite being given contact information, program options, and regulatory pathways – amounted to “willful blindness.”

Officials also noted the company did not dispute its prior offence, failed to show evidence of due diligence, and made no effort to mitigate the violation or prevent recurrence.

KMS Tools, on the other hand, claimed that it had suffered financial harm rather than benefit, citing negative publicity, legal costs, and lost customer goodwill after being portrayed as a business that “doesn’t recycle.” 

The ministry rejected this claim, finding that the company knowingly avoided at least $8,800 in program fees and chose to ignore clear options for compliance.

KMS Tools has 30 days from the date of the determination to pay the penalty or file a new appeal with the Environmental Appeal Board. If it fails to pay, the government may take additional action, including interest charges, revocation of business authorizations, or legal recovery of the debt.

KMS Tools owner Stan Pridham said the company will file another appeal and continue to fight what he described as a deeply flawed and unfair regulation.

“We will continue to fight this nonsensical and unfair regulation like we have for the last 12 years” he said/

Pridham argued the ERP rules were never designed for businesses like his, and designed for the food industry and big national retailers

He also said the company has “made many attempts to find out how we could comply,” but has received no clear guidance from the ministry, Recycle BC, or their Ontario-based parent organization.

“They repeatedly tell us how we could ‘apply’ but never how we could ‘comply,’” Pridham said. “If compliance was possible, surely they would be able to tell us how to comply or give us an example of how a business like ours is complying.”

Pridham also claimed that none of KMS Tools’ direct competitors are on the steward list and have not been penalized, calling the enforcement “inconsistent” and “harassment.”

He disputed the ministry’s claim that the company had received repeated instructions, claiming that ,ministry staff have ignored requests emails.

“We do all the normal recycling and prevent old tools from going to landfill with our ‘Tools For The World’ program,” Pridham said, adding the company has suffered reputational harm due to media coverage.