"Recyclers in the U.S. are now awash in dirty plastic, with no outlet for their commodity. Much of that is headed for landfills."
-as culled from here
Even in little Newark, Ohio this is a real thing. Two months ago, we were prepared to bid on a local 90,000 square foot abandoned industrial building. On a price per square foot basis the building was ridiculously cheap. One catch. The previous owner, who was walking away from the building, stocked the whole place with giant bales of compacted dirty "recycled" plastic. The buyer of the building also got the bales. We had several quotes for hauling the dirty plastic to the landfill - there being no other use for it. That cost changed the building from ridiculously cheap to a bit too risky for our taste.
There is no doubt that many of our fellow citizens feel virtuous when they carefully sort their trash and take their recyclables to a recycling center. Not sure that feeling is warranted.