💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Starbucks wins dismissal in U.S. of underfilled latte lawsuit

Published 01/07/2018, 04:56 PM
Updated 01/07/2018, 05:00 PM
© Reuters. FILE PHOTO: A Starbucks store is seen inside the Tom Bradley terminal at LAX airport in Los Angeles
SBUX
-

By Jonathan Stempel

(Reuters) - Starbucks Corp (NASDAQ:SBUX) has won the dismissal of a U.S. lawsuit accusing the coffee chain of overcharging customers by underfilling lattes and mochas to reduce milk costs.

U.S. District Judge Yvonne Gonzalez Rogers on Friday found a lack of evidence that Starbucks cheats customers by making its cups too small, using "fill-to" lines on baristas' pitchers that are too low, and instructing baristas to skimp on ingredients, such as by leaving a quarter-inch of space atop drinks.

The Oakland, California-based judge also rejected a claim that milk foam added to lattes and mochas should not count toward advertised volumes. She said reasonable customers expect foam to take up some volume, and the plaintiffs conceded that foam is an essential ingredient in their drinks.

"Accordingly, plaintiffs fail to show that lattes contain less than the promised beverage volume represented on Starbucks' menu boards," Rogers wrote.

Lawyers for the plaintiffs did not immediately respond on Sunday to requests for comment. Starbucks did not immediately respond to similar requests.

Lattes contain espresso, steamed milk and foam. Mochas are similar but also contain a chocolate sauce.

Siera Strumlauf and Benjamin Robles, both of California, and Brittany Crittenden of New York had accused Starbucks in their proposed nationwide class action of fraud and false advertising by underfilling 12-, 16- and 20-ounce lattes by about 25 percent, causing unspecified damages.

Starbucks countered that its cups hold more than the advertised number of ounces, and that the "fill-to" lines provide guidance to baristas as to how much cold milk, which expands when steamed, to pour into pitchers.

In 2016, two federal judges dismissed separate lawsuits accusing the Seattle-based company of cheating customers who bought iced beverages, finding that reasonable customers would understand that ice counts toward their drinks' contents.

© Reuters. FILE PHOTO: A Starbucks store is seen inside the Tom Bradley terminal at LAX airport in Los Angeles

The case is Strumlauf et al v Starbucks Corp, U.S. District Court, Northern District of California, No. 16-01306.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.