Starbucks accused of rigging payments in app for nearly $900 million gain over 5 years by consumer watchdog group::Washington Consumer Protection Coalition complains to Washington state attorney general.
This is nothing new. Why do you think damn near any place will sell you a gift card? Because even IF someone uses it, there’s almost always some left on the card, OR people spend over the amount, spending more than they would have originally. They are literally a ‘can’t lose’ for businesses.
in California, all gift cards $10 or less can be redeemed for cash.
you may have to argue with employees and management, but its the law… it’s also a misdemeanor for the cashier to refuse it to you.
Funny enough, I tried this with Starbucks and the manager refused.
oh ive been there.
i had the manager at a mcdonalds refuse me once, so i ended up showing him the law on my phone… which didn’t convice them… so i emailed corporate, who called me back, and the store… and then the store had the law printed on the window at the entrance…
the next time i tried it there, had to still get a manager who said “i’ll just do it this one time”
and i kept letting him know that i know he has to every time…I wish I had the energy to be this petty over $1.60. I genuinely respect your efforts.
it’s not about the $10, it’s the principle…
Did you show them the law?
interesting, didn’t know that
most people don’t
(b)(1) Any gift certificate sold after January 1, 1997, is redeemable in cash for its cash value, or subject to replacement with a new gift certificate at no cost to the purchaser or holder
Not just under 10
there’s more to that:
Any gift certificate sold after January 1, 1997, is redeemable in cash for its cash value, or subject to replacement with a new gift certificate at no cost to the purchaser or holder.4 Effective January 1, 2008, any gift certificate with a cash value of less than $10 is redeemable in cash, which includes currency or check, for its cash value.
In case anybody is wondering this part is important because the thing the other guy posted just says it can be replaced with cash OR a new gift card of equal value. That doesn’t mean it’s the customer’s choice which one they receive though so businesses would just choose to replace it with another gift card.
Do EZ-Pass next. I’m tired of getting charged $35 every time my account dips below the $5 threshold or whatever it is.
I hope this suit works, there’s a lot of game microtransactions out there that could use the precedent
This is the best summary I could come up with:
A consumer action group is accusing Starbucks of exploiting customers via its gift card and app payments, forcing them to enter a spending cycle where they will never be able to fully spend the remaining balance of prepaid amounts.
“Starbucks rigs its payment platform so consumers are encouraged to leave unspent money on their cards and apps,” said Chris Carter, campaign manager for the group, in a statement.
“A few dollars here and there left on a payment platform may not sound like a lot but it adds up.
Starbucks spokesperson Sam Jefferies told Fortune the company “is committed to working with the State of Washington to ensure it remains in compliance with all state laws and regulations.”
The group, in a 15-page complaint, alleges the platforms for Starbucks’ mobile app and digital payment cards are akin to an “involuntary subscription.” Customers can only reload money in $5 increments, with a $10 minimum purchase.
Today, drive-through and app orders make up the majority of the company’s purchases.
The original article contains 316 words, the summary contains 167 words. Saved 47%. I’m a bot and I’m open source!
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