Loyal Starbucks customers know there are limitations to using the company’s mobile app and digital payment cards to pay for coffee and other goods.
You can only top up your card in $10 increments, and chips must be selected from a predetermined selection. This means you don’t have to load the exact amount on a single purchase or tip an odd number to get your balance to zero.
Also, if you don’t have enough balance on one card to cover the purchase amount, you won’t be able to split the payment between the two cards unless you complete the transaction directly.
Critics called the practices “unfair and deceptive” and on Wednesday called on Washington Attorney General Bob Ferguson to investigate whether they violate the state’s consumer protection laws.
In a 15-page complaint, the Consumer Protection Federation of Washington said the company’s mobile app and digital payment card platform create a vicious cycle that resembles an “involuntary subscription” in which customers are tricked into spending more money than they asked for. They claim that it is designed to trick them.
“A few dollars left here and there on a payment platform may not sound like a lot, but it adds up to a significant amount,” said Chris Carter, the coalition’s campaign manager.
He said the company has claimed nearly $900 million in corporate revenue for unused gift cards and app money over the past five years.
Leaders of the coalition, whose members include the Washington State Labor Council, the Washington Education Association and Invest in Washington Now, announced the filing of the complaint at a news conference in Seattle.
One of the affected customers seeking legal action against the Seattle-based coffee vendor, Brittany Ferguson, is a customer service representative at Seattle Tuck Airport. .
“Personally, I feel we have a moral obligation to hold companies accountable to best practices when it comes to treating consumers,” she said. “Consumers should have the freedom to spend the money they pay Starbucks in any way they choose.”
A spokesperson for the Attorney General’s Office confirmed that it had received the materials from the coalition.
“We will carefully consider the information provided,” Ferguson spokeswoman Breonna Aho said in an email. She added: “Anyone who suspects they are the victim of unfair or deceptive conduct should file a complaint with our office.”
A Starbucks spokesperson said customers appreciate the ease of use and convenience the app provides. If a problem occurs, “our customer care team will work with you to resolve the issue,” said Sam Jeffries, Starbucks media relations.
He said Starbucks is committed to working with the state of Washington to ensure compliance with all state laws and regulations.
“Deceive and manipulate”
User experience designer Harry Brignull coined the term “dark pattern” in 2010. He refers to actions that companies may incorporate into their platforms to trick or manipulate users into making choices they would not otherwise have made, potentially causing harm. I used this word. .
As more and more commerce moves online, the use of manipulative design techniques is increasing in scale and sophistication, the Federal Trade Commission reported last year.
The coalition that filed the complaint alleges that Starbucks has engineered “dark patterns” into its mobile app and digital payment card platform.
A minimum of $10 is required to start the mobile app, but if a lower amount is possible, the preselection is $25, which induces customers to reload the excess amount.
The complaint states that customers are forced to make future purchases because they cannot reload just what they need for a one-time purchase.
“This Catch-22 traps customers in a cycle similar to involuntary subscriptions,” the complaint says.
Customers can avoid such hurdles.
But the complaint alleges that this is not enough.
“The fact that Starbucks is making certain choices that are not yet possible in an app that is not yet available in-person means that Starbucks is making payments that influence customer behavior in ways that are beneficial to Starbucks but harmful to consumers.” This suggests that the platform is intentionally designed.”
The filing of the complaint coincided with Wednesday’s pre-filing of a bill that would prevent Starbucks and other large companies from continuing to profit from unused gift cards.
As a result of the 2004 law, businesses can now keep unspent funds and report them as revenue. Bills introduced in the House and Senate would require gift cards with balances remaining for more than three years to be sent to states as unclaimed property. This will give cardholders more time to access their money.
This article was previously published by the Washington State Standard, an affiliate of the nonprofit States Newsroom Network, which includes the Florida Phoenix.