In a significant legal development, a collective action has been initiated against Starbucks concerning its gift card policy. This move highlights consumer dissatisfaction with practices related to the use of gift card balances.
Background of the Case
The case centers around a customer, identified only as Jonathan, who is represented by lawyers from Lambert Avocats: Jimmy Ernst Jr., Benjamin W. Polifort, and Loran-Antuan King. The collective action argues that Starbucks compels customers to purchase additional gift cards to redeem their remaining balances.
On February 28, 2026, Jonathan received a Starbucks gift card from his partner. After using part of the card to buy a drink, he was left with a balance of $1.32. When he inquired about a cash refund for this balance, an employee informed him that this option was unavailable.
Incidents Leading to the Lawsuit
On March 7, 2026, Jonathan attempted to use his gift card balance through the Starbucks mobile app to purchase a coffee. However, he was unable to use the $1.32 remaining balance for his payment. Consequently, he inadvertently purchased a new gift card worth $20 to complete his transaction, leaving him with a new balance of $3.33.
Later, on March 28, 2026, Jonathan faced a similar situation. His gift card balance of $3.33 was again insufficient to cover the full price of his beverage. The app prompted him to reload the card, forcing him to buy another card for $10, despite only needing to pay an additional $1.79.
Claims Made in the Collective Action
The lawsuit claims that Starbucks has violated several articles of the Consumer Protection Act and the Civil Code of Quebec. It alleges that customers are unfairly forced to buy new gift cards to utilize their existing balances.
- Date Received: February 28, 2026
- Initial Balance: $1.32 (after first usage)
- Second Balance: $3.33 (after second usage)
- Additional Purchase: $20 gift card for the first transaction
- Minimum Reload Requirement: $10 for the second transaction
Demands from the Collective Action
Jonathan seeks to represent a group of individuals residing in Quebec. This group includes those who, since May 12, 2023, were required to reload a gift card to complete a purchase via the Starbucks mobile app or website. The collective action demands:
- Refund of the extra amounts spent to utilize gift card balances.
- $1,000 in punitive damages for each group member.
This case underscores the broader implications of consumer rights and corporate policy practices, while consumers await the court’s ruling and potential changes in Starbucks’ gift card policies.
