This is for glass recycling not plastic, but I recently found out that my county ships all of their glass recyclables to be dumped in a landfill of a neighboring state. In my state, waste disposal companies are legally obligated to recycle everything they can that ends up in a recycling bin. But with glass it's actually vastly cheaper to produce new glass bottles than it is to make them out of recycled material. So there isn't a market for the waste management companies to even sell the product they legally have to produce. To get around this regulation they just ship their recycled glass to a state without this regulation, and dump it all in a landfill there.
It seems like the only way to make recycling truly effective at a large scale is to make it economically viable, either through the creating of new recycling techniques that make using recycled materials the cheapest option, or through subsidies to artificially produce the same effect.