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Starbucks faces class-action lawsuit over Web coupons

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Case ID: 4909 | Consumer Products | 09/12/2006

Plaintiff Kelly Coakley and her lawyers filed a national class-action lawsuit seeking $114 million from Starbuck Corp., the Seattle company that operates coffee shops and owns other coffee, tea and bottled water brands.

The company released a response to the filing, saying only that Starbucks was aware of a press release stating a lawsuit had been initiated in New York and that the company had not been contacted by the law firm that issued the release.

The free-offer fracas began in late August when Starbucks emailed a coupon (originally valid from noon to 9 p.m. through Sept. 30) to some employees in the Southeast with directions to forward it on to friends and family. The coupon soon became public, zipping around Internet chat rooms, blogs and email boxes.

Early on, the world's largest coffee retailer attempted to honor the coupon, but changed its mind Aug. 30 and deemed the deal invalid at all Starbucks locations in North America. The company apologized for the inconvenience in a posting on its Web site, adding that the coupon "has been redistributed beyond the original intent and modified beyond Starbucks control."

Sullivan said his firm already has received many calls from people who received the coupon, attempted to use it and were told it was invalid. The filing estimates the class could include "hundreds of thousands" of consumers.

"I'm amazed to the extent that people were annoyed by this - there is a real deep groundswell of emotion," said a partner in the firm that filed the lawsuit. "The lawsuit is open to customers nationwide, and the court has not yet set a closing date to accept more plaintiffs" he continued."

"Starbucks should account to the thousands of consumers who relied upon the advertisement, went out of their way to stop by a Starbucks and ended up being charged $3 for coffee," said a lawyer handling the new filing.


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