Judge authorizes lawsuit against coffee chains over milk alternatives

A Quebec judge has authorized a class-action lawsuit alleging that Starbucks, Second Cup, and Tim Hortons charge consumers unfair prices for milk alternatives. The law firm LPC Avocats claims the coffee chains have been 'price gouging' customers who request non-dairy substitutes for medical, health, personal, social, or environmental reasons. The lawsuit alleges that Starbucks and Second Cup charge an 'abusive and unconscionable' surcharge of $0.80 plus taxes, while Tim Hortons charges $0.50 plus taxes. According to the court documents, Starbucks admitted it incurs an additional $0.12 for substituting cow's milk for a non-dairy option, but charges the customer $0.80, meaning it charges consumers more than six times the cost it incurs. The court calculated that Second Cup charged $0.80 for a substitution that cost the chain $0.43, while Tim Hortons charged $0.50 for a substitution that cost $0.28 in eastern Quebec. The ruling indicates that these figures 'indicate that it is possible to argue that the price surcharges for dairy substitutes in the defendants' restaurants are unfair within the meaning of section 8 of the Consumer Protection Act.' The case is based on procurement costs submitted by the defendants, which showed that dairy alternatives cost Starbucks 16 per cent more than cow's milk, while they cost Foodtastic (the owner of Second Cup) 98 per cent more. TDL Group said Tim Hortons franchisees paid 63 per cent more for dairy alternatives in western Quebec and 67 per cent more in eastern Quebec. The ruling does not determine whether the coffee chains acted unlawfully, but allows the case to proceed. Starbucks ceased imposing a surcharge for non-dairy substitutes in November 2024.

(Source：The North Bay Nugget)