There are cases like that here in Europe as well, but for the most part companies still do recycle most of the plastics.
I think one problem is that recycled plastics are considered inferior in terms of quality.
What I always wonder, is one supposed to dump plastic into the recycling container without cleaning it before? If people throw in plastics with a little food or detergent on it, companies would have to clean the trash before recycling it. Or do we consumers have to do it? It feels odd to wash up garbage
Not to mention the waste of water...