Class-Action Lawsuit Approved to go Forward Against Starbucks, Tim Hortons & Foodtastic for Excessive Surcharges for Plant-Based Milks – CoffeeTalk
A judge in Québec has authorized a class-action lawsuit against Starbucks, Tim Hortons, and Foodtastic concerning excessive surcharges for plant-based milk. The suit argues that these coffee chains charged excessively compared to their actual costs. Notably, Starbucks revealed that substituting cow’s milk with plant-based milk cost them just 12 cents, yet they charged consumers an 80-cent surcharge.
Justice Catherine Martel noted the disproportionate nature of these charges, allowing the lawsuit to advance based on internal cost figures. Tim Hortons and Foodtastic also had similar discrepancies, with charges that were significantly higher than their costs. This is particularly significant given that non-dairy milk often has a comparable retail price to cow’s milk.
The legal argument asserts that such pricing violates Québec’s Consumer Protection Act and discriminates against consumers with lactose intolerance. Approximately 16% of Canadians are lactose intolerant, highlighting the importance of equitable pricing for alternatives.
Public sentiment, as expressed by the plaintiff’s lawyer Joey Zukran, is that the fees are egregious and unjust. The lawsuit aims to hold the companies accountable for their previous practices, despite recent removals of the surcharge. The ruling could set a precedent for similar cases, as it raises broader concerns about consumer rights and the fairness of pricing strategies in the coffee industry, particularly as plant-based alternatives gain popularity amidst declining dairy consumption in Canada. The judge also mentioned potential liability for franchisors if it’s proven they encouraged unfair pricing strategies.
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Source: Coffee Talk
