Quebec Superior Court file #:
500-06-001351-242
What this case is about:
Approximately 44% of Canadians are lactose intolerant. For years, Starbucks, Second Cup and Tim Hortons have been price gouging consumers who requested non-dairy substitutes in their beverages, either because of medical reasons (such as lactose intolerance), or other health, personal, social or environmental reasons (such as vegans representing approximately 5% of Canadians). Starbucks, Second Cup and Tim Hortons charged an abusive and unconscionable surcharge of $0.80 plus taxes (Starbucks and Second Cup) and $0.50 plus taxes (Tim Hortons) for non-dairy substitutes that cost them a fraction of that amount, at most. Quebec jurisprudence and doctrine state that a sanctionable disproportion exists when it is equivalent to twice the market value of the good.
A recent report prepared by the AgriFood Analytics Lab at Dalhousie University found that the average prices at retail of dairy alternatives are at parity with milk. The report also analyzed comparisons at the provincial levels and concluded that “Dairy alternatives are cheaper in three provinces: Ontario, Prince Edward Island, and Quebec. Dairy alternatives are on average 7% cheaper“. The report is available here.
On November 7, 2024, Starbucks ceased imposing a surcharge for non-dairy substitutes. Starbucks public statement is available here.
Proposed Classes:
“Starbucks Class”
All consumers in Canada who, between December 30, 2021 and November 7, 2024, were charged for a non-dairy substitute when purchasing a Starbucks beverage.
“Second Cup Class”
All consumers in Canada who, since December 30, 2021, were charged for a non-dairy substitute when purchasing a Second Cup beverage.
“Tim Hortons Class”
All consumers in Canada who, since December 30, 2021, were charged for a non-dairy substitute when purchasing a Tim Hortons beverage.
Remedies sought for consumers:
The purpose of this class action is to obtain:
a) an injunction ordering Second Cup and Tim Hortons to cease surcharging for non-dairy substitutes (Starbucks has already ceased the practice as of November 7, 2024)
b) reimbursement of the whole (or a portion) of the surcharges paid by Class Members for the non-dairy substitutes; and
c) punitive damages for Class Members.
Status:
The Application to Authorize a Class Action was filed on December 30, 2024. A copy is accessible below. Pending authorization hearing.
