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Starbucks hit with lawsuit over false ‘ethical’ claims

Starbucks becomes the latest global corporation to be legally challenged for making unsubstantiated and completely false claims about its ‘ethically sourced’ products.

The global coffee giant Starbucks is under fire from a U.S. consumer group, which alleges that the company’s claims of ethically sourced coffee are deceptive and untrue.

The National Consumers League filed legal action in court in Washington DC. It cited several media reports which detail human rights and labour abuses on coffee and tea farms in Brazil, Guatemala, and Kenya that supply Starbucks with coffee beans and tea.

The consumer group argues that these incidents raise serious questions about the authenticity of Starbucks’ packaging claims, which boast the company’s commitment to ‘100 percent ethical coffee sourcing.’

Sally Greenberg, CEO of the National Consumers League, said, ‘On every bag of coffee and box of K-cups sitting on grocery store shelves, Starbucks is telling consumers a lie.’

‘The facts are clear: there are significant human rights and labour abuses across Starbucks’ supply chain, and consumers have a right to know exactly what they’re paying for,’ she continued.

Starbucks responded on Wednesday, pledging to defend itself legally against the claims.

Among the evidence put forward against Starbucks is a 2022 case from Brazil where police rescued 17 workers, including three teenagers, from a coffee farm. The laborers were allegedly subjected to working outdoors without protective equipment and forced to lift 130-pound sacks of coffee.

This incident was brought to light by Repórter Brasil, a group of investigative journalists focusing on workers’ rights and environmental issues in the country.

In its report, it also claimed that Starbucks-supplying farms deduct the cost of harvesting equipment out of workers’ wages, do not provide clean drinking water or proper toilets, and employ underage workers.

On Wednesday, Starbucks claimed it had no knowledge about the findings of the journalists or the conditions asserted by them. In a statement, the company said: ‘We take allegations like these extremely seriously and are actively engaged with farms to ensure they adhere to our standards.’

Also included in the lawsuit is a 2023 report which exposed sexual abuse and harsh working conditions on the James Finlay tea plantation in Kenya, which was – at the time – a supplier to Starbucks.

Responding to the latest use of that evidence, Starbucks simply stated it no longer purchases tea from that plantation.

 

Of course, Starbucks is a major player in the coffee industry, buying three percent of the world’s coffee supply and engaging with 400,000 farmers in over 30 countries.

With such an immense market presence, The National Consumers League argues that the company’s certification program must be improved, as it currently falls short of guaranteeing ethical sourcing.

Starbucks implemented its ethical sourcing guidelines in 2004. To do so, it has employed third-party verification of conditions at its suppliers. The company claims zero tolerance for child labour and mandates a safe, fair, and humane working environment for farmers.

Still, the National Consumers League argues that Starbucks is misleading consumers by failing to disclose the limitations of its third-party certification program – limitations which can’t guarantee that its products are ‘100 percent ethical’.

Thankfully, the lawsuit it will seek to halt what it says are deceptive tactics and demand that the company adequately update its packaging and advertising practices – because who isn’t sick of all the lies told by big corporations?

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