The lawsuit in B.C. Supreme Court also alleges deceptive practices regarding the company’s use of chemicals to make its ‘100 per cent Arabica’ decaf coffee
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Anyone who’s ever bought a Starbucks coffee in Canada could be eligible for compensation after the launch in B.C. of a proposed class-action lawsuit questioning the source of its beans and its use of chemicals.
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The proposed lawsuit, just filed in B.C. Supreme Court on behalf of Canadians, alleges deceptive marketing practices under B.C.’s consumer protection laws.
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It alleges that Starbucks tells its customers that it audits its supply chain to ensure it buys beans only from farms that don’t used forced, exploitative or child labour.
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“In reality, Starbucks does not and cannot reliably ensure compliance with ethical sourcing,” the lawsuit says.
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The lawsuit follows a similar one filed in Washington state in January on behalf of U.S. customers.
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The proposed lawsuit in Canada says Starbucks claims to source its coffee from up to 450,000 farms in 30 countries, most of which have records of human rights abuses.
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“Starbucks has neither the scope nor the resources to verify compliance,” it says.
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It says investigations by journalists, human rights groups and governmental bodies have documented labour violations on farms that participate in Starbucks’ coffee and farmer-equity practices program and found repeated problems “where Starbucks has not.”
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Starbucks markets its decaf coffee as “100 per cent Arabica” — that is, pure coffee — but it uses volatile organic compounds, such as benzene and toluene, to remove the caffeine, without disclosing their presence on labels, the lawsuit alleges.
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It omits “information necessary for consumers to make informed purchasing decisions,” according to the lawsuit.
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Starbucks customers paid a price premium and therefore “suffered economic loss” by buying that coffee, it argues.
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It is seeking restitution for all affected customers in B.C. and the rest of Canada, except for Quebec, which has a unique legal system.
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Erin Tosh, the representative plaintiff, alleges Starbucks’ conduct “constitutes deceptive acts or practices,” contrary to the B.C. Business Practices and Consumer Protection Act and “false or misleading representations” under Canada’s Competition Act.
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“The plaintiff pleads that the defendants are liable in common law for breach of express and implied warranties, negligent misrepresentation and in equity for unjust enrichment,” it said.
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And, for failing to disclose the presence of decaffeinating chemicals, Starbucks violates B.C.’s Sales and Goods Act and similar laws in other provinces, it alleges.
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Tosh regularly bought Starbucks coffee, including decaf, in the past decade and relied upon the company’s claims about the coffee’s quality and sourcing of coffee beans, the lawsuit said.
