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.
Starbucks spokesperson Sam Jefferies told Fortune the company “is committed to working with the State of Washington to ensure it remains in compliance with all state laws and regulations.”
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.
Today, drive-through and app orders make up the majority of the company’s purchases.
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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.
Starbucks spokesperson Sam Jefferies told Fortune the company “is committed to working with the State of Washington to ensure it remains in compliance with all state laws and regulations.”
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.
Today, drive-through and app orders make up the majority of the company’s purchases.
The original article contains 316 words, the summary contains 167 words. Saved 47%. I’m a bot and I’m open source!