Starbucks Overcharges for Breakfast Sandwiches, Class Action Says

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Starbucks Corp. is being sued in a price-switch class action lawsuit in California Superior Court, alleging the coffee company advertised two of its breakfast sandwiches at a lower price than what the baristas actually charged consumers.

Plaintiff Sarah Martin filed this Starbucks price-switching class action lawsuit in Los Angeles Superior Court on May 20, claiming that Starbucks’ store displays advertise the coffee company’s reduced-fat turkey bacon breakfast sandwich and sausage and cheddar breakfast sandwich at lower prices than the plaintiff actually paid.

For example, the turkey bacon sandwich is advertised at $3.45, but Martin was allegedly charged $3.75. Similarly, the sausage and cheddar sandwich is advertised at $3.25, but the plaintiff paid $3.45, according to the Starbucks price-switch class action lawsuit.

According to the plaintiff’s attorney, the overcharge for these Starbucks sandwiches may seem small, but the profit quickly adds up when the number of Starbucks California coffee shop locations and the numbers of sandwiches sold at these locations are taken into consideration. Martin’s price-switch class action lawsuit lists at least seven different Starbucks locations in Los Angeles county. Additionally, the plaintiff’s attorney claims he found the same alleged price-switch practice at other California Starbucks locations.

The price-switch class action lawsuit further alleges that the Starbucks’ receipt policy aided in concealing the alleged false advertising and price-switch. “Plaintiff and members of the proposed classes relied to their detriment on Starbucks misrepresentations regarding the price of goods,” the Starbucks class action lawsuit says. “Starbucks also has the policy of asking consumers whether they would like a copy of their receipt, which makes it harder to discover the misrepresentation.”

Martin’s attorney mailed a letter to Starbucks, requesting the coffee seller fix the misrepresentation of prices, as well as a preservation demand, which asks Starbucks to not destroy the advertising labels displaying the sandwich prices.

This Starbucks price-switch class action lawsuit brings several allegations against Starbucks under California statutes, including consumer legal remedies act violations, false advertising, unfair competition, unjust enrichment, and fraud.

Martin seeks to represent herself in this Starbucks class action lawsuit, as well as a Class of: “All persons who, at any time on or after the date that is four years before the filing of this Complaint, purchased goods from a Starbucks’ location in California and were charged a higher price than the price advertised by Starbucks at the time of sale.”

Martin is being represented by George S. Azadian and Ani Azadian of Azadian Law Group PC.

The Starbucks Price Switch Class Action Lawsuit is Sarah Martin, et al. v. Starbucks Corp., et al., Case No. BC582335, in the Superior Court of the State of California for the County of Los Angeles.

UPDATE: On Aug. 24, 2016, a California judge granted preliminary approval of a settlement that would end a price-switch class action lawsuit against Starbucks Corp., alleging the company overcharges customers for certain breakfast sandwiches.

UPDATE 2: The Starbucks breakfast sandwich class action settlement is now open! Click here to file a claim!