Starbucks Hit with Greenwashing Suit - PracticalESG (2024)

FAQs

What is the Starbucks greenwashing case? ›

About the case

On 10 January 2024, US non-profit the National Consumers League (NCL) filed a complaint against Starbucks at the Superior Court of the District of Columbia for allegedly making false claims that its tea and coffee products are “ethically sourced” and for misleading marketing practices.

The National Consumers League (NCL) filed suit in D.C. Superior Court, accusing Starbucks of misrepresenting to consumers that it is “committed to 100% ethical coffee sourcing” when it sources its coffee beans and tea leaves from farms that have committed human rights abuses in violation of the District of Columbia ...

Starbucks sued for allegedly using coffee from farms with rights abuses while touting its 'ethical' sourcing. The lawsuit calls for the coffee chain to end its “unfair and deceptive” trade practices and argues that the company is aware of the child and forced labor on some of its supplier farms.

One of the most famous examples of greenwashing comes from Volkswagen after the company was accused of cheating on pollution tests and modifying engine software.

In 2022, the company reached a settlement in a lawsuit in which a woman sued Starbucks for marketing their hot chocolate as “ethically sourced” despite what she described as child labor implicit in the cocoa trade.

These include tax avoidance, allegations of irresponsible marketing, issues surrounding worker and human rights. Before we discuss these ethical questions, let's summarise the history of the company.

In its 2022 Global Environmental Social Impact report, Starbucks said that 98.2% of its coffee is ethically sourced and verified through C.A.F.E Practices and that the program covers more than 400,000 farmers in more than 30 countries.

Hundreds of complaints have been filed with the NLRB accusing Starbucks of unlawful labor practices such as firing union supporters, spying on workers and closing stores during labor campaigns.

Here's a summary of the biggest greenwashing fines seen to date: Volkswagen: The car company said that its diesel scandal cost $34.69 billion in fines and settlements. Volkswagen misled customers by using software in its cars that recorded lower greenhouse gas emissions.

earth, Canada has launched an investigation into deceptive marketing practices by lululemon. The application claims that lululemon has engaged in greenwashing by exaggerating climate action as part of its “Be Planet” marketing campaign.

Why is Starbucks not sustainable? ›

Starbucks uses more than 8,000 paper cups a minute, which adds up to more than four billion a year. 1.6 million trees are harvested every year for all of those single-use cups. Since these cups are lined with plastic, they are not really recyclable ─ only four U.S. cities even accept Starbucks paper cups for recycling.

Greenwashing cases are often substantially costly to companies, as plaintiffs often seek statutory penalties for a large class, attorney's fees, disgorgement of monies, and potentially most damaging, brand trust and loyalty. Greenwashing litigation has substantially impacted federal policies across the country.

An example would be a recycling logo on a packet without any information on which part of the packaging is actually recyclable. This applies heavily to coffee packaging. Most packets have aluminium valves to keep the coffee fresh but this can not be recycled.

Firing of workers involved in unions

In 2022, over a period of few months, Starbucks fired more than 85 workers in the US involved in organizing worker unions against unfair labor practices. The workers also accused Starbucks of creating a culture of fear and surveillance in the store.