Abstract: A rack, or caddy, is disclosed which stores and dispenses used plastic bags. Normally the bags are grocery store or department store sized bags made from a thin film of plastic which have been saved for reuse somehow. The caddy includes a sheet member which may be made of molded plastic material such as polypropylene, and it has several cups joined to it. The interior walls of the cups are spaced far enough apart to permit a user to insert hand compacted plastic bags into the cups, and thereafter the walls hold them there by limiting the expansion of the bags.