Starbucks Faces Allegations of Exploiting Dark Patterns in Its App, Accumulating Nearly $900 Million

In a surprising turn of events, coffee giant Starbucks is now under scrutiny for allegedly employing dark patterns in its mobile application, a tactic that consumer advocates claim has contributed to the company amassing nearly $900 million over the past five years. The Washington Consumer Protection Coalition filed a complaint on December 19, accusing Starbucks of utilizing deceptive digital practices that trap users into prepaying for its services.

The complaint specifically targets the way Starbucks’ mobile app handles low funds, rendering them essentially unusable if they fall below the cost of the cheapest drink. The app allegedly restricts users from combining these remaining funds with other payment methods or using them as a tip. The only alternative presented is to add more funds, likened by the coalition to an “involuntary subscription.” Although the complaint acknowledges the option to reload accounts in-store for a custom amount of $5 or more, it emphasizes that the default reload amount in the app is set at $25, with a minimum display of $15.

“The Starbucks Payment Platform involves unfair and deceptive digital dark patterns that effectively trap its customers into prepaying for the company’s services,” states the complaint, urging the Attorney General to intervene and rectify the alleged harms caused to consumers.

Starbucks responded by stating that customers could request in-store baristas to combine their app balance with another payment method during orders. However, the company did not clarify why this option isn’t directly available within the app itself.

Chris Carter, campaign manager for the consumer group, emphasized the impact of leaving unspent money on Starbucks’ payment platform, claiming the company has reported nearly $900 million in unspent gift card and app money over the last five years, thereby boosting corporate profits and executive bonuses.

This accusation follows a trend where major tech companies like Google and Facebook faced fines for their use of dark patterns, highlighting an increasing concern about deceptive digital practices within the technology industry. Starbucks, while asserting its commitment to compliance with state laws and regulations, now awaits further action from regulatory authorities.