“Starbucks rigs its payment platform so consumers are encouraged to leave unspent money on their cards and apps," the group says.
Starbucks accused of rigging payments in app for nearly $900 million gain over 5 years by consumer watchdog group::Washington Consumer Protection Coalition complains to Washington state attorney general.
I know too many people that think Starbucks is the only place that makes good coffee and refuse to go anywhere else. No, you like strong roasts, lots of sugar, and plenty of advertising, most of which you can get anywhere else if you just ask.
Keep in mind that for a number of people, places like Starbucks and Dunkin create an accessable entry to something beyond a home made pot of Folgers.
I grew up smelling my parents coffee and enjoying the smell, but the taste was horrific so I swore off drinking coffee. Fast forward many years and I dipped my toe into that overly sweet and milky Starbucks and found something that actually tasted good to me. Many years later I have my own grinder and espresso machine, and numerous other coffee gadgets, and might only darken the door of Starbucks/Dunkin a few times a year for convenience. Can I make something at home I enjoy more? Yep. But there's nothing wrong with other people having other tastes along their coffee journey.
My local coffee scene is basically different versions of Dunkin Donuts, even the indie places have old coffee with chemical flavors. There is one place that serves a tasty espresso shot but it has inconsistent hours and is a 20 minute drive. Starbucks is closer and the app is super convenient.
We don't all live in big cities with lots of options and Starbucks fills the void.
Coffee flavored lemonade. Last time I went to a Starbucks I asked for just a black coffee, and the look they gave me really expressed the "dirty peasants and their inferior coffee taste" sentiment. Now I just make coffee at home to bring along.
A consumer action group is accusing Starbucks of exploiting customers via its gift card and app payments, forcing them to enter a spending cycle where they will never be able to fully spend the remaining balance of prepaid amounts.
“Starbucks rigs its payment platform so consumers are encouraged to leave unspent money on their cards and apps,” said Chris Carter, campaign manager for the group, in a statement.
“A few dollars here and there left on a payment platform may not sound like a lot but it adds up.
Starbucks spokesperson Sam Jefferies told Fortune the company “is committed to working with the State of Washington to ensure it remains in compliance with all state laws and regulations.”
The group, in a 15-page complaint, alleges the platforms for Starbucks’ mobile app and digital payment cards are akin to an “involuntary subscription.” Customers can only reload money in $5 increments, with a $10 minimum purchase.
Today, drive-through and app orders make up the majority of the company’s purchases.
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