Reported by CHRIS MORRIS

The Washington Consumer Protection Coalition, 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. 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.”

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.

That, the group says, prevents customers from ever reaching a zero balance, meaning Starbucks pockets more of the customer’s money.

Read full report: https://fortune.com/2024/01/03/starbucks-app-dark-side-unspent-payments-900-million-5-years/amp/

Read full copy of Complaint: https://drive.google.com/file/d/1rO5rJr7N0GEFtcJUMaWiwYnz22fJlmck/view?pli=1