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 .