Starbucks Accused of Rigging Payments in App for Nearly $900 Million Gain Over 5 Years by Consumer Watchdog Group

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.

The Washington Consumer Protection Coalition, a self-described “movement of everyday consumers advocating for corporate accountability,” is calling on the state attorney general to investigate whether the company’s policies violate consumer protection laws.

“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.”