Starbucks, $SBUX, is accused of rigging payments in app for nearly $900 million gain over 5 years

Starbucks, $SBUX, is accused of rigging payments in app for nearly $900 million gain over 5 years, per the Washington Consumer Protection Coalition and FORTUNE.


According to the Seattle-based organization, known for prioritizing "the public good over private greed," Starbucks stands accused of exploiting customers through its gift card and app payment systems.

As outlined in a statement obtained by Yahoo! Finance, a representative from the Washington Consumer Protection Coalition detailed the alleged strategy employed by Starbucks, resulting in nearly $900 million in additional revenue. The accusation centers on the setup of the gift card and app payments, which supposedly makes it challenging for customers to exhaust all available funds. Furthermore, the system requires users to add funds in $5 increments, with a minimum spending requirement of $10.

The representative, Chris Carter, campaign manager for the organization, asserted, “Starbucks rigs its payment platform so consumers are encouraged to leave unspent money on their cards and apps. A few dollars here and there left on a payment platform may not sound like a lot, but it adds up. Over the last five years, Starbucks has claimed nearly $900 million in unspent gift card and app money as corporate revenue, boosting corporate profits and inflating executive bonuses.”

Following the consumer action group's 15-page complaint, a Starbucks spokesperson responded by expressing the company's commitment to collaborating with the State of Washington to ensure compliance with all applicable state laws and regulations. Starbucks also clarified that customers can use the remaining balance on their gift card or app by utilizing the available amount and covering the balance with cash at the coffee shop.