Why Is the Coffee Industry Watching the Dunkin Surcharge Case?
Dunkin faces a class action lawsuit over the extra charge it applies to drinks made with non-dairy milk such as oat and almond milk. Ten plaintiffs argue the surcharge discriminates against customers with lactose intolerance or dairy allergies, conditions recognized as disabilities under the Americans with Disabilities Act. The case adds to pricing disputes already simmering in the American coffee industry.
Starbucks has faced similar allegations over plant-based milk pricing. Operators typically justify the surcharge on cost, since non-dairy alternatives sell in lower volumes than traditional lattes and carry a higher price per unit. The lawsuit tests whether that cost argument holds up when the substitution is a medical need rather than a preference, which could reshape how American coffee chains set menu prices.
For coffee lovers who are lactose intolerant or allergic to dairy, plant-based alternatives such as oat milk and almond milk allow them to enjoy lattes without worry. However, the American coffee chain giant Dunkin recently faced a class action lawsuit for charging extra fees for non-dairy drinks. The plaintiffs argue that this practice constitutes discrimination against people with lactose allergies and intolerance, in violation of the Americans with Disabilities Act. This is not the first time the American coffee industry has encountered legal disputes over plant-based milk pricing; Starbucks has also faced similar allegations previously. This article will review the course of events, the legal basis, and industry reactions, and explore the cost and fairness issues behind the pricing controversy of non-dairy drinks.
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For coffee consumers who love lattes but suffer from lactose intolerance, drinks made with plant-based milk such as oat lattes and almond lattes allow them to enjoy them with peace of mind, without worrying about adverse physical reactions. At the same time, from a nutritional perspective, oat milk is also a relatively healthy choice, and is therefore quite popular among people who pay attention to health.
Driven by consumer demand, many chain coffee brands such as Starbucks and Peet's have introduced non-dairy coffee drinks to their menus, providing customers with more choices. However, although plant-based milk lattes are favored by some consumers, from the daily sales data of coffee shops, their sales still lag behind traditional lattes. Out of cost considerations, most coffee shop operators will accordingly raise the prices of non-dairy drinks.
However, recently, according to Daily Coffee News, the American coffee giant Dunkin was hit with a consumer class action lawsuit for raising the prices of non-dairy drinks. The plaintiffs believe that Dunkin's price increase constitutes discrimination against people with lactose allergies and lactose intolerance.
Under the Americans with Disabilities Act, people with lactose allergies and lactose intolerance are both recognized as disabled. Therefore, lawyers representing 10 plaintiffs allege that Dunkin's practice of charging a surcharge for non-dairy drinks violates the Americans with Disabilities Act, as well as related laws in California, New York, Texas, Colorado, Massachusetts, and Hawaii, and demand that Dunkin pay the plaintiffs $5 million in compensation.
The complaint states that there is no substantial difference between the cost of lactose-containing milk and the cost of non-dairy milk, yet when consumers with lactose allergies or lactose intolerance choose alternatives such as soy, oat, coconut, or almond milk, Dunkin charges an additional surcharge of 50 cents to $2.15. For people with lactose allergies and lactose intolerance, this is undoubtedly a form of discrimination and can be seen as a high-priced menu targeting consumers who cannot drink milk.
This situation is not unique in the United States. Another American coffee giant, Starbucks, also faced consumer allegations in 2022 for raising the prices of non-dairy drinks, with claimants arguing that the price increase violated the Americans with Disabilities Act. The class action is still being heard in a U.S. district court in Florida, and no corresponding judgment has yet been made.
From the consumer's standpoint, the cost difference between lactose-containing milk and non-dairy milk is not significant, and coffee shops should not charge extra fees to a specific group of people because of this. Various animal protection and environmental protection organizations in the United States also oppose coffee shop operators raising the prices of non-dairy drinks.
Some netizens believe that Dunkin could also make oat milk the default milk option in its U.S. stores, just as other coffee chains such as Blue Bottle Coffee do, and then it would not face accusations from consumers.
As of now, Dunkin has not responded to Daily Coffee News on this matter.
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