Starbucks, the renowned coffee giant, is facing a lawsuit filed by a consumer advocacy group, The National Consumers League, accusing the company of engaging in false advertising and deceiving customers with claims of 100% ethically sourced beverages. The lawsuit, filed in a Washington, D.C., court, alleges that Starbucks relies on farms and cooperatives involved in severe labor and human rights violations, contrary to the ethical image it portrays.
According to Sally Greenberg, CEO of The National Consumers League, Starbucks is telling consumers a lie on every bag of coffee and box of K-cups by falsely claiming their products are ethically sourced. The lawsuit accuses the coffee chain of unjustly benefiting from its reputation as a corporate responsibility leader while doing business with cooperatives and farms with documented histories of child labor, forced labor, sexual harassment, and assault.
In response to the lawsuit, Starbucks issued a statement expressing its intention to aggressively defend against the claims, emphasizing its commitment to ethical sourcing. Michelle Burns, Executive Vice President of global coffee, social impact, and sustainability, stated that Starbucks takes the allegations seriously.
The lawsuit aims to protect consumers nationwide who may unknowingly purchase unethically sourced coffee or tea, paying a premium for products that do not meet the claimed ethical standards. The consumer group seeks an order to prevent Starbucks from engaging in deceptive advertising and requires the company to run a corrective advertising campaign. The goal is to ensure consumers are informed about what they are paying for.
The consumer league alleges that Starbucks would need to significantly reform its sourcing and monitoring practices to fulfill the promises advertised to its customers. The lawsuit cites examples of alleged ethical violations, including a 2022 labor complaint in Brazil, sexual abuse in a plantation in Kenya, slavery-like conditions on a farm in Brazil, and child labor in a farm in Guatemala.
Despite the existence of the Coffee and Farmer Equity (C.A.F.E.) Practices certification, Starbucks is accused of failing to respond with meaningful action in instances where abuse was reported at certified farms and cooperatives. The complaint contends that Starbucks misleadingly omits material facts regarding the presence of forced and child labor.
Starbucks has defended its ethical-sourcing program, C.A.F.E. Practices, stating that it remains the cornerstone of its work to ensure the long-term supply of high-quality coffee. The company emphasized the program’s verification nature, requiring regular reverification and relying on third-party auditing by SCS Global Services. Starbucks believes that continuous improvement and scrutiny are essential to promoting positive change among suppliers and farms.
Over the past 20 years, Starbucks claims to have gained valuable insights into supporting coffee farmers’ needs through auditing, evaluating results, and strengthening auditing standards and practices. The company pledged to remain present in regions where it sources coffee globally, asserting that its presence in these communities must be a force for good.
The lawsuit brings attention to the challenges companies face in maintaining ethical standards throughout complex global supply chains. As the legal proceedings unfold, Starbucks will need to address the specific allegations raised by The National Consumers League and demonstrate its commitment to ethical practices in the sourcing of its coffee and tea products.