What does the plant-based milk lawsuit mean for the origin of latte pricing?
Three lactose-intolerant consumers in California filed a class-action lawsuit against Starbucks, saying a 50 to 80 cent surcharge for plant-based milk in lattes and Frappuccinos discriminates against people who cannot drink dairy. The complaint, filed in federal court in Fresno, seeks $5 million and cites the Americans with Disabilities Act and state civil rights law.
The plaintiffs note that whole milk costs about 3 to 5 cents per ounce while oat, soy, coconut and almond milk run 4 to 7 cents, and that the added fee sometimes reached 40% of a drink's price in 2023. Starbucks says a small amount of plant-based milk is free and larger amounts are a customization. Dunkin' has faced similar claims, and the case touches the origin of latte pricing debates.
Starbucks is recently facing a class-action lawsuit in California, USA. Three lactose-intolerant consumers accuse it of charging extra fees when substituting milk with plant-based milk in drinks, alleging discrimination and violation of civil rights laws, and seeking $5 million in damages. The plaintiffs point out that plant-based milk is not an option but a necessity for lactose-intolerant people, yet Starbucks profits enormously from it. Starbucks responds that customers can add a small amount of plant-based milk for free, with additional amounts charged as customization. Previously, brands like Dunkin' Donuts were also sued over similar issues. This article will outline the incident, both parties' positions, and industry background, and include related recommendations from Front Street Coffee.
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Recently, three consumers in California, USA, filed a class-action lawsuit against Starbucks, accusing it of charging extra when substituting milk with plant-based milk in drinks like lattes and Frappuccinos, constituting discrimination against lactose-intolerant groups and violating civil rights laws, and seeking $5 million in damages.
According to a March 21 report by The Guardian, three California residents from Los Angeles and Madera—Maria Bollinger, Dawn Miller, and Shunda Smith—all suffer from lactose intolerance or milk allergies. They submitted the class-action complaint to the federal court in Fresno, California, earlier this month.
The plaintiffs state in the complaint that since 2018, they have frequently patronized Starbucks, and each time they requested substituting milk with plant-based milk, they were charged an extra 50 to 80 cents per drink. They believe that Starbucks has created a higher-priced menu for customers who cannot drink milk, which violates the Americans with Disabilities Act (ADA) and California civil rights laws.
The lawsuit documents also point out that whole milk costs about 3 to 5 cents per ounce, while plant-based milks like oat, soy, coconut, and almond milk cost between 4 and 7 cents per ounce. In 2023, the average price of all Starbucks coffees and beverages was $3.25, but the surcharge for plant-based milk sometimes accounted for 40% of a drink's price, clearly inconsistent with the actual cost of plant-based milk.
The plaintiffs therefore argue that Starbucks "intentionally and deliberately disregarded" the rights of the plaintiffs and lactose-intolerant patients across the US, and profited over $1 billion from this.
The plaintiffs' lawyer further points out that under the Americans with Disabilities Act, lactose intolerance is a disability affecting about 30 to 50 million Americans. Once such people ingest milk or milk-containing products, they experience health issues such as stomach pain, digestive inflammation, bloating, and even vomiting. Therefore, plant-based milk is "not an option" for them, but a necessity.
In response to the case, Starbucks representatives declined to comment, citing the ongoing litigation.
However, regarding the addition of plant-based milk, Starbucks stated in a release that customers at US stores can add up to 4 ounces (about 118.28 milliliters) of plant-based milk for free to coffee, tea, and other customized beverages. Starbucks Rewards members can also redeem 25 stars to add a certain amount to any beverage that doesn't contain plant-based milk. Additionally, customers can choose to pay extra to add plant-based milk to any beverage on the menu, similar to other customizations like adding extra espresso or syrup.
In fact, Starbucks is not the only chain sued over plant-based milk surcharges. In January this year, major US chain Dunkin' Donuts also faced a similar lawsuit, and coffee operators in many US locations have also faced related allegations in recent years for charging for plant-based milk.
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