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By oil companies. They pushed the plastic recycling narrative before it was even feasible to recycle it, all to sell more oil for plastics.
You know that recycling logo with the three arrows? It doesn't even mean that the plastic is recyclable; it simply states what type of plastic the material is made out of.
NPR did a recent investigation in this matter, and less than 5% of recycled plastic, given to your local recycling plant, actually gets recycled.
Not to mention that we didn't even know if our recycling was even recycled. We used to ship it to countries in Asia, burning bunker oil all the way there, and whatever happened to it happened. Out of sight, out of mind, and likely not recycled.
The best thing you can do is not buy disposable plastics. Even other materials that are very recyclable, like aluminum and glass, still needs to be shipped, processed, melted down, and remanufactured to be useful. It's better for the environment, but not anywhere close to net zero.
No need to use the past tense, this is still the case in most cases.