Starbucks accused of tricking customers into its app and raking in $900 million

by time news

2024-01-05 15:00:28

By PLT

Published 3 hours ago, Updated 2 hours ago

Faced with these accusations, the company based in Seattle (Washington State) defended itself of any deception. Brendan McDermid / REUTERS

An American consumer association accuses the American coffee chain of having rigged its mobile application to prevent its customers from using their entire balance.

Some Starbucks customers would like to give him a cup. In the United States, the American coffee chain is accused by a consumer rights group of having deceived its customers via its payments application.

For several years, Starbucks coffee drinkers have gotten into the habit of paying for their coffee using their cell phone. To facilitate their ordering, the American giant has set up a mobile application with a rechargeable account. To those who use it, Starbucks promises free coffees or birthday gifts.

But the application would hide a darker side. In a fifteen-page complaint, the Washington Consumer Protection Coalition, a consumer defense association in Washington state, accuses Starbucks of having rigged its mobile application to prevent its customers from using their entire balance. “Consumers say they are trapped in a strange cycle”notes the association in a press release published on December 20.

$900 million unclaimed

In its press release, the association denounces two misleading practices for consumers. The first is to encourage customers to top up their account with a minimum amount of $10 while offering to top up their balance by $25 by default. The second consists of limiting the tips that can be made from the application. As a result, many customers forget or leave a few dollars on their application in desperation. Like small streams make big rivers, these different techniques would have allowed Starbucks to amass nearly 900 million dollars (825 million euros) unclaimed over the last five years, according to the consumer association.

Faced with these accusations, the group based in Seattle (Washington State) defended itself of any deception. “The Starbucks app is the easiest way for customers to find a nearby store, check opening hours, order ahead and use contactless payment”, declared a Starbucks spokesperson to the American media Business Insider. The company also emphasized that it would help customers if they accidentally added the wrong amount of money to their Starbucks card.


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