'It adds up.' Consumer group alleges Starbucks' app traps customers into paying more
Consumer advocates are calling on the Washington State Attorney General's Office to investigate what they say are manipulative practices related to Starbucks' Rewards program.
Washington Consumer Protection Coalition complaint against Starbuck’s mobile app
Consumer advocates are calling on the Washington State Attorney General's Office to investigate what they say are manipulative practices related to Starbucks' Rewards program.
Speaking outside the Starbucks First Avenue and Pike Street shop, advocates recently argued that the coffee giant's mobile app is designed to make it difficult for consumers to spend down existing balances.
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Misha Wershkul, executive director of the Washington State Budget and Policy Center, laid out a typical scenario. Say a customer wants to make a purchase that costs $6.50, and has a $5 balance on the app.
“I’m not able to add just $1.50 to cover my full purchase,” Wershkul said. “I’m actually required to reload a specific amount. So, I would add another $10.”
She says reloading keeps consumers in a subscription they can’t get out of. Customers who choose not to reload end up leaving the money unspent.
“A few dollars here and there, left behind, may not sound like a lot of money, but it adds up,” said Chris Carter, campaign manager for the Washington Consumer Coalition.
Carter estimates Starbucks has claimed nearly $900 million in unspent gift card money over the past five years.
The coalition filed a complaint with the Attorney General’s Office, saying this practice violates state consumer laws. It is also calling on elected leaders to pass legislation against this practice.
Nationwide, more than 33 million consumers actively use Starbucks’ Rewards program.
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Starbucks did not respond to a request for comment in time for this story.