Starbucks Hit With Class Action Over 'Sugar-Free' Protein Drinks
SBUX sits 21% above its 52-week low of $77.99 on light trading volume (0.2× avg).
Summary
A proposed class action filed Friday in Seattle federal court accuses Starbucks of falsely labeling eight protein beverages as 'sugar-free' despite containing 13-21 grams of sugar per venti serving from lactose. The suit claims this violates federal law, which caps 'sugar-free' claims at 0.5 grams per 12 ounces, and that Starbucks omitted required disclaimers about calorie content and weight control. The beverages, launched in September 2025 under the 'Back to Starbucks' menu, are marketed as 'protein-packed' with 'no added sugar.' The lawsuit names Sugar-Free Vanilla Protein Latte, Sugar-Free Caramel Protein Latte, Sugar-Free Vanilla Protein Matcha, Sugar-Free Caramel Protein Matcha, and their iced versions. Plaintiffs allege Starbucks violated false advertising laws in New York, California, and Washington, and they are requesting restitution. Starbucks says the claims are without merit and it will vigorously defend itself. This is the first report of this litigation and adds a new legal risk to the company's recent operational challenges, including store closures and restructuring charges. Damages are unspecified, but the case could expand to a class and draw regulatory scrutiny over labeling practices.
Updated with a Dow Jones Newswires report · What changed
Updates
· Dow Jones Newswires — The lawsuit was filed by three consumers on behalf of a proposed class.
- Class Action Filing — The class action case was filed by three consumers on behalf of a proposed class of Starbucks customers.
- Products Named — The lawsuit names Sugar-Free Vanilla Protein Latte, Sugar-Free Caramel Protein Latte, Sugar-Free Vanilla Protein Matcha, Sugar-Free Caramel Protein Matcha, and their iced versions.
- False Advertising Laws — Plaintiffs allege Starbucks violated false advertising laws in New York, California, and Washington.
- Restitution Request — Plaintiffs are requesting restitution.
- Marketing Channels — Starbucks provided information on its protein beverages via product announcements, menus, marketing materials, Starbucks.com and the Starbucks app.
All 5 details
- The class action case was filed by three consumers on behalf of a proposed class of Starbucks customers.
- The lawsuit names Sugar-Free Vanilla Protein Latte, Sugar-Free Caramel Protein Latte, Sugar-Free Vanilla Protein Matcha, Sugar-Free Caramel Protein Matcha, and their iced versions.
- Plaintiffs allege Starbucks violated false advertising laws in New York, California, and Washington.
- Plaintiffs are requesting restitution.
- Starbucks provided information on its protein beverages via product announcements, menus, marketing materials, Starbucks.com and the Starbucks app.
At the time of this announcement, SBUX was trading at $94.57 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $107.8B. The 52-week trading range was $77.99 to $110.51. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.