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Starbucks accused of rigging payments in app for nearly $900 million gain over 5 years by consumer watchdog group

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

“Starbucks rigs its payment platform so consumers are encouraged to leave unspent money on their cards and apps," the group says.

Starbucks accused of rigging payments in app for nearly $900 million gain over 5 years by consumer watchdog group::Washington Consumer Protection Coalition complains to Washington state attorney general.

43 comments

SinningStromgald

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This problem can also be avoided by just not buying their shitty coffee and food.

P.S. Fuck Starbucks!

them

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I know too many people that think Starbucks is the only place that makes good coffee and refuse to go anywhere else. No, you like strong roasts, lots of sugar, and plenty of advertising, most of which you can get anywhere else if you just ask.

hedgehogging_the_bed

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Except Dunkin. I can't get a coffee worth shit at Dunkin.

ericisshort

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Yet some psychos swear Dunkin’ has the best coffee.

ShepherdPie

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Must be why they were driven out of business here on the caffiene-obsessed west coast. Their coffee is just too good.

XeroxCool

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Dunkin cold brew is delicious. Their drip coffee is just stained water though.

Duranie

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Keep in mind that for a number of people, places like Starbucks and Dunkin create an accessable entry to something beyond a home made pot of Folgers.

I grew up smelling my parents coffee and enjoying the smell, but the taste was horrific so I swore off drinking coffee. Fast forward many years and I dipped my toe into that overly sweet and milky Starbucks and found something that actually tasted good to me. Many years later I have my own grinder and espresso machine, and numerous other coffee gadgets, and might only darken the door of Starbucks/Dunkin a few times a year for convenience. Can I make something at home I enjoy more? Yep. But there's nothing wrong with other people having other tastes along their coffee journey.

paf0

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My local coffee scene is basically different versions of Dunkin Donuts, even the indie places have old coffee with chemical flavors. There is one place that serves a tasty espresso shot but it has inconsistent hours and is a 20 minute drive. Starbucks is closer and the app is super convenient.

We don't all live in big cities with lots of options and Starbucks fills the void.

frunch

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Have you tried brewing your own at home? I've gotten into making fresh cups using a single-cup Clever Dripper setup and grind the beans as needed. Soooooo much better than DD/Starbucks and very easy to make. It does take time though (approx 6-7 mins to make a cup start to finish) and a bit of $ to get started (maybe about $100 for dripper, kettle, filters, and beans), but i can't imagine how much money i would have wasted on so-so (or worse) coffee bought at DD/Starbucks/etc everyday.

paf0

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Yes, but sometimes it's nice to have someone else make it, and to hang out somewhere that's not my home office.

frunch

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Not saying i never buy coffee while I'm out! I just don't have to go out and buy it every time i want a good cup... And i love a good cup of coffee, lol 💖

Just throwing it out there--good coffee is easy to make!

danthehutt

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Either a thrifted moka pot or an Aeropress is king in this situation, imo. Super cheap, low barrier of entry, and leaves money for a decent grinder in the budget. Not to mention the super short brew time which is key for a lot of people.

Also, get a hand frother! Life changer for making your home cuppa feel higher class.

them

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This sounds reasonable to me. Starbucks is everywhere. But when you do have options they're far from the top choice.

You could have a look around to see if you have any local coffee roasters and then find out who they supply to try and get something a lot fresher.

SlowLoudEasy

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What advertising?

SlopppyEngineer

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Coffee flavored lemonade. Last time I went to a Starbucks I asked for just a black coffee, and the look they gave me really expressed the "dirty peasants and their inferior coffee taste" sentiment. Now I just make coffee at home to bring along.

GunValkyrie

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That's weird. Most Starbucks workers I know love when people order black coffee. It's the easiest to make.

FontMasterFlex

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You're right. @slopppyEngineer is just projecting their own misconceptions. Source: was a Barista at Starbucks.

RampantParanoia2365

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I seriously doubt the kid at the counter gave one flying fuck what kind of coffee you ordered.

LWD

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deleted

trolololol

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This is helpful. It says unless you plant your own food you're probably almost sure for real giving money to bad companies.

moistclump

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Tough to memorize. At what point is it just easier to list the good companies we don’t have to avoid?

LWD

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deleted

Blackmist

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Look, it's easy. If it's fizzy, it's made by Coca-Cola. If it's sweets, it's made by Mars or Mondelez. If it's breakfast, it's made by Kelloggs, and if it's evil, it's made by Nestle.

SinningStromgald

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I only drink filtered tap water and I take my water bottle everywhere so I don't have to worry about that.

Shyfer

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What about food? Or do you only grow your own radishes watered only by the rain and your own piss, like that guy from The Good Place?

FontMasterFlex

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This is nothing new. Why do you think damn near any place will sell you a gift card? Because even IF someone uses it, there's almost always some left on the card, OR people spend over the amount, spending more than they would have originally. They are literally a 'can't lose' for businesses.

xor

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in California, all gift cards $10 or less can be redeemed for cash.

you may have to argue with employees and management, but its the law... it's also a misdemeanor for the cashier to refuse it to you.

graymess

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Funny enough, I tried this with Starbucks and the manager refused.

xor

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oh ive been there.
i had the manager at a mcdonalds refuse me once, so i ended up showing him the law on my phone... which didn't convice them... so i emailed corporate, who called me back, and the store... and then the store had the law printed on the window at the entrance...
the next time i tried it there, had to still get a manager who said "i'll just do it this one time"
and i kept letting him know that i know he has to every time...

graymess

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I wish I had the energy to be this petty over $1.60. I genuinely respect your efforts.

xor

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it's not about the $10, it's the principle...

Gestrid

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Did you show them the law?

FontMasterFlex

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interesting, didn't know that

xor

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most people don't

Kbobabob

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(b)(1) Any gift certificate sold after January 1, 1997, is redeemable in cash for its cash value, or subject to replacement with a new gift certificate at no cost to the purchaser or holder

Not just under 10

xor

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there's more to that:

Any gift certificate sold after January 1, 1997, is redeemable in cash for its cash value, or subject to replacement with a new gift certificate at no cost to the purchaser or holder.4 Effective January 1, 2008, any gift certificate with a cash value of less than $10 is redeemable in cash, which includes currency or check, for its cash value.

GiveMemes

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In case anybody is wondering this part is important because the thing the other guy posted just says it can be replaced with cash OR a new gift card of equal value. That doesn't mean it's the customer's choice which one they receive though so businesses would just choose to replace it with another gift card.

93maddie94

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Do EZ-Pass next. I’m tired of getting charged $35 every time my account dips below the $5 threshold or whatever it is.

ben_dover

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i went to Rome recently, and one might argue that Italy has the best coffee in the world. the queue at Starbucks went out of and around the building.

insert agitated Jackie Chan meme

ExLisper

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A lot of tourists go to Rome you know. In Spain Burger king is usually full of tourists while locals eat tapas.

Shard

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You can even get a decent freshly ground and brewed expresso out of a vending machine. Why you would go to Starbucks in Italy.

Zoboomafoo

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I hope this suit works, there's a lot of game microtransactions out there that could use the precedent

autotldr

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This is the best summary I could come up with:

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!

Pizzadogeminer

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