This is also what we did with soda cans when I lived in Michigan. You'd pay 10 cents extra per can, and then get it back when you returned them. If you didn't return them, the state had 10 cents to use to clean up waste produced by that can. If you did, you got your money back and the can got recycled. It seemed to work pretty well. I remember a year after they started the program noting how much cleaner the roads seemed because people were going out and picking up cans to return them and fewer people were throwing them out their car windows.
It's how recycling used to work. There were big skips for glass, paper, textiles etc in most supermarket car parks. They were well utilised by shoppers before entering the store. Before that we used to return the empties for reuse within the store.
If a campaign of returns caused supermarkets to restrict suppliers, and create less in the first place, I would do so diligently.
So is driving your garbage back to the store where you bought something.
The whole process, taken as a whole, just doesn't make any environmental sense.