Montreal law firm files class action against coffee chains over non-dairy charges

Montreal law firm LPC Avocat is suing major coffee chains, claiming they unfairly charged customers extra for non-dairy milk substitutes in their lattes.

The lawsuit targets Tim Hortons, Starbucks, and Second Cup, accusing them of profiting from the practice for years.

According to class action lawyer Joey Zukran, this practice affected a significant portion of customers.

“Well, it’s 44 per cent of the Canadian population who are lactose intolerant,” said Zukran.

“So you’re looking at not only vulnerable consumers by definition but also for health reasons. You have another 5 per cent of the Canadian population that are vegans. So, you’ve just basically targeted 50 per cent.”

The class action, which has yet to be proven in court, argues that the coffee chains engaged in what Zukran describes as “highway robbery,” characterizing the surcharge as an abusive charge under the Quebec Consumer Protection Act.

The price of milk substitutes has dropped considerably over the years, now often falling below the cost of regular cow’s milk.

“About ten years ago, most dairy alternatives were more expensive. No doubt the volume wasn’t there. But demand has gone up, production has gone up, and prices have dropped significantly,” said Sylvain Charlebois, an agro researcher at Dalhousie University.

Last fall, Starbucks announced that it would no longer charge extra for non-dairy options.

“Core to the Starbucks Experience is the ability to customize your beverage to make it yours. By removing the extra charge for non-dairy, we’re embracing all the ways our customers enjoy their Starbucks,” said Starbucks chairman and CEO Brian Niccol in a press release.

Tim Hortons followed suit, changing its policy just last week.

“The decision that Tim Hortons would no longer charge for non-dairy options for other beverages starting on Jan. 2 significantly pre-dated this court filing,” the company noted.

Despite these recent changes, Zukran said he believes the coffee chains should still compensate customers for past charges.

“You’re looking at millions, tens of millions of dollars that Starbucks, Tim Hortons, and Second Cup have collected in the aggregate,” he said.