Consumer Advocacy Group Sues Starbucks Over False Advertising Claims
Starbucks is facing a lawsuit from a consumer advocacy group alleging that the company falsely advertises its commitment to ethical sourcing on its coffee and tea products.
Allegations of Misrepresentation
The National Consumers League filed a lawsuit against Starbucks in a Washington, DC court, claiming that the global coffee chain deceives consumers with its claims of being 'committed to 100% ethical coffee sourcing' and '100% ethically sourced tea.' According to the lawsuit, Starbucks continues to source coffee beans and tea leaves from places that have been associated with severe human rights and labor abuses, including child labor, forced labor, sexual harassment, and assault.
During a press conference, Sally Greenberg, CEO of the National Consumers League, stated, 'On every bag of coffee and on every box of K cups sitting on our grocery store shelves, Starbucks is telling consumers a lie.' She highlighted the significant human rights and labor abuses present in Starbucks' supply chain.
Starbucks' Response
A spokesperson for Starbucks responded to the allegations, stating that the company plans to aggressively defend against the claims and that they take them extremely seriously. The spokesperson emphasized that Starbucks remains committed to working with their business partners to meet the expectations outlined in their Global Human Rights Statement and that each supply chain undergoes regular reverification.
Starbucks, which aims to open two new stores in India each week, is hoping to fuel its growth through overseas expansion. The company has faced criticism recently, with its stock dipping and unionizing efforts underway.
Supply Chain Concerns
The lawsuit highlighted instances of slavery-like conditions, child labor, human trafficking, and other exploitative working conditions in Starbucks' supply chain. One incident mentioned was a complaint issued by a Brazilian labor prosecutor in 2022 against Starbucks' largest Brazilian supplier, alleging slavery-like working conditions.
Starbucks has its own sourcing standards called Coffee And Farmer Equity Practices (C.A.F.E), which involve evaluation and third-party verification. However, the lawsuit referenced investigative reports in Brazil and Kenya that revealed issues with Starbucks' certified coffee and tea suppliers, including wage theft and gender-based violence.
Seeking Reform and Corrective Measures
The National Consumers League is seeking to restrict Starbucks from engaging in deceptive advertising and is calling for the company to reform its sourcing practices. They also want Starbucks to run a corrective advertising campaign. Sally Greenberg stressed the importance of treating workers fairly and in accordance with the law at the farms and cooperatives that supply Starbucks' coffee and tea products.
