Judge authorizes lawsuit against coffee chains over milk alternatives
A Quebec judge has authorized a class-action lawsuit alleging Starbucks, Second Cup, and Tim Hortons charge excessive surcharges for non-dairy milk alternatives.Summary
A Quebec judge has authorized a class-action lawsuit alleging that Starbucks, Second Cup, and Tim Hortons charge "disproportionate" surcharges for non-dairy milk alternatives. The law firm LPC Avocats claims the coffee chains charge between $0.50 and $0.80 plus taxes for substitutes like soy, oat, almond, and coconut milk, while the actual cost to the chains is a fraction of that amount. Starbucks admitted it costs the company $0.12 to substitute cow's milk for a non-dairy option but charges customers $0.80, resulting in a price more than six times the merchant's cost. The lawsuit, filed by Liel Ohayon, seeks an injunction to stop the surcharges and obtain reimbursement and punitive damages for consumers in Quebec who purchased non-dairy substitutes between Dec. 30, 2021, and early 2025. The court ruled that the surcharges are "unfair within the meaning of section 8 of the Consumer Protection Act" based on procurement cost data showing the chains pay significantly more than the surcharge amounts they collect.
(Source：The Expositor)