Evidence for this? I can point to dozens of members of the public that I know who aren't making an effort or doing their best, and people in companies who are. It seems like you just have an axe to grind.
As in, a URL that you could post or something? Because if Redmond, WA came out and made it "public knowledge" that Waste Management was tossing our plastic straight into the landfill, someone's getting a spanking. Now, that's not to say that it doesn't happen, I'm just questioning that any municipality would be so upfront as to make public want many already suspect. But if that's actually the case, I'd love to read up.
They mostly talk about a recycling center that is producing low quality recyclables with other materials mixed in because they've had issues with their sorting machines, currently involving a lawsuit with the manufacturer.
The closest parallel is the use of crushed mixed glass as landfill cover, which is down-cycling, since they'd need to buy sand instead, which crushed glass is a substitute for.