A class action suit against the Tim Hortons, Starbucks and Second Cup chains was filed in Quebec Superior Court at the end of 2024 by Montreal-based LPC Avocats.

The lawyer in the case, Me Joey Zukran, argues that the targeted chains have pocketed tens of millions of dollars since December 30, 2021, by charging customers a surcharge to replace milk with a plant-based beverage - soy, almond, coconut or oat - in a coffee.

The surcharge, described as abusive and exorbitant by Me Zukran, amounts to $0.80 plus tax at Starbucks and Second Cup, and $0.50 plus tax at Tim Hortons. 

“For years, Starbucks, Second Cup and Tim Hortons have exploited consumers who requested non-dairy substitutes in their beverages, either for medical reasons (such as lactose intolerance) or for other health, personal, social or environmental reasons,” we read in the class action presentation.

The objective of the class action is to obtain an injunction requiring the chains to cease charging additional fees, to obtain full or partial reimbursement of the fees paid by participants, and that punitive damages be imposed. 

Plant-based beverages less expensive than regular milk

To support his statement, the lawyer cites a report prepared by Dalhousie University's Agrifood Analytics Lab, which reveals that “average retail prices for dairy substitutes are equivalent to those for milk”.

What's more, according to the same report, dairy substitutes such as soy, almond, coconut or oat beverages are, on average, 7% less expensive than regular milk in various Canadian provinces, including Quebec. 

Starbucks and Tim Hortons withdraw surcharge

On November 7, 2024, Starbucks announced the withdrawal of its $0.80 surcharge, stating that substituting milk with non-dairy products is the second most popular customer request.

“Following the implementation of this change on November 7, more than a quarter of customers in Canada who customize their beverages in company-operated stores will see a reduction in their bill of more than 10%,” Starbucks Canada said in a statement.

Full details of the lawsuit are available on the LPC Avocats website.