Why is Starbucks getting sued? $5 million lawsuit explained as the brand gets dragged to the court for deceiving customers

Starbucks has again found itself in troubled waters as the coffeehouse chain faces a $5 million lawsuit for false advertising. The class-action lawsuit filed by Joan Kominis of Astoria, NYC, and Jason MacAllister of Fairfield, CA, accuses the coffeehouse chain of having deceived customers with drinks that lack real fruits.

Filed last year in August, the lawsuit alleges that the chain's refresher drinks, including - Pineapple Passionfruit, Strawberry Açai, and Mango Dragonfruit - do not contain any of the highlighted real fruits but are made with sugar, grape juice concentrate, and water. The plaintiffs alleged that the chain deceived customers with false advertising, thus breaking consumer protection laws in New York and California.

The $5 million lawsuit was filed against the coffeehouse chain back in August 2022 over its refresher drinks (Image via Starbucks)

The Seattle-based coffeehouse chain refuted the allegations, stating that the name of the drinks does not specify the ingredients used but only the flavor profile of the specific drinks. However, that argument didn't seem to hold in the Manhattan court as US District Judge John Cronan noted that 'açai,' 'mango,' and 'passionfruit' are usually understood to indicate the flavor and the presence of the real fruits.

Additionally, Judge John Cronan noted that such confusion is quite reasonable as the chain's Honey Citrus Mint Tea and Ice Matcha Tea Latte contain the ingredients highlighted in their names.

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Starbucks claims the $5 million class-action lawsuit to be "inaccurate and without merit"

Starbucks becomes the latest target of a 'false advertising' lawsuit, as US District Judge John Cronan allows a $5 million lawsuit against the coffeehouse chain.

Filed last year in August, the class-action lawsuit alleges that some of the chain's refresher drinks deceive customers as they don't have any real fruits. The lawsuit also alleges the chain of violating consumer protection laws in California and New York by charging a relatively higher or premium price for the refresher drinks with misleading names.

Starbucks continues to defend its stance as the chain claims that the name of the drinks represents the flavors and not the ingredients in the drink. The chain clarified that this information should be clear to all reasonable customers, and the same could be confirmed with the staff at any store.

The coffeehouse chain may have to face 9 out of the 11 claims in the lawsuit (Image via Starbucks)

Speaking to the press on the matter, a representative for the chain said:

"The allegations in the complaint are inaccurate and without merit."

The class-action lawsuit led by the plaintiffs Joan Kominis (Astoria, NYC) and Jason MacAllister (Fairfield, CA) includes 11 different claims. While Judge John Cronan allowed further ruling in nine of the claims, two claims of 'unjust enrichment and fraud' were dismissed as it could not be proved that the coffeehouse chain had specific fraudulent intentions regarding the products in purview.

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The court has now allowed the lawsuit, and the coffeehouse chain will have to face it as soon as a date for the ruling is announced.