Plastics chiefs have urged firms to report recycled-content fraud to the authorities.
Trade body the British Plastics Federation (BPF) said it was important for companies to advise the Environment Agency if they came across false claims of material-origin.
Anyone manufacturing or importing a threshold level of plastic packaging components containing less than 30 per cent recovered plastic must pay a tax of more than £220 per tonne under UK law.
But the BPF raised “concern” that some companies may be using “exaggerated” claims of recycled content in their products.
“The motive for this could be to avoid the paying the Plastic Packaging Tax (PPT) or, for non-packaging products, to make false claims to assist marketing efforts,” the body added.
Some firms “claim to have been put out of business as a result of PPT-related fraud” said the BPF.
Helen Jordan, sustainability manager at the BPF, said: “A few bad actors can potentially tarnish the reputation of the entire industry and blight the image of recycled plastics in the eyes of the public. Companies that commit fraud also make it more difficult for legitimate companies to thrive.
“We call on companies to report any instances of fraud they encounter to the Environment Agency so that appropriate measures can be taken against them. The more fraud is reported, the more it will be on the minds of those in government.”