Starbucks Accused of Rigging App Payment System for $900 Million Profit
The Washington Consumer Protection Coalition has called for an investigation into the company's practices, alleging that customers are encouraged to leave unspent money on their cards and apps.
- Starbucks is under scrutiny after a consumer protection group alleged that the company has manipulated its app payment system to profit by nearly $900 million over five years.
- The Washington Consumer Protection Coalition has requested the state attorney general to investigate Starbucks's gift card and app payment systems, which they claim are designed to make customers spend more money than necessary.
- The complaint alleges that Starbucks has rigged its payment system in such a way that consumers cannot spend all the money they have in their accounts, leading to unspent balances that Starbucks claims as corporate revenue.
- Starbucks has defended itself, stating that customers can pay for their order with whatever amount they have left on their app or gift card, and pay the remaining in cash at the store, which will then help bring the balance down to zero.
- The misuse of app payment systems and profiting from them is not new in the tech industry, and the outcome of this case could have significant implications for other companies.