Starbucks accused of using dark patterns in its app to retain nearly $900 million

midian182

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In context: We're used to seeing major tech companies accused of using dark patterns – a user interface designed to trick or deceive people into taking specific actions. However, this practice isn't exclusive to companies like Amazon and Google. A consumer group alleges in a complaint that Starbucks also employs similar tactics with its app, which has reportedly helped the company accumulate almost $900 million over the past five years.

The Washington Consumer Protection Coalition says that the dark patterns in Starbucks' mobile app relate to the way it makes low funds unusable.

The coalition writes in its complaint, filed on December 19, that in cases where the balance is less than the cheapest drink at Starbucks, the money essentially becomes stuck in the app. The platform doesn't allow users to combine the funds with other payment methods or use it as a tip, meaning the only option beyond leaving it there is to add more funds. The coalition compares this to an "involuntary subscription," though it does admit that reloading an account in stores for a custom amount of $5 or more can make hitting zero easier.

The group adds that customers can reload their Starbucks cards in specific amounts with a $10 minimum. But the app displays the minimum amount as $15 and automatically sets a default reload amount of $25.

"The Starbucks Payment Platform involves unfair and deceptive digital dark patterns that effectively trap its customers into prepaying for the company's services," the complaint states. "The Attorney General should take immediate action to put a stop to Starbucks' unfair and deceptive conduct and make Washington's consumers whole for the harms it has caused them."

Starbucks told Gizmodo that customers can ask an in-store barista to combine their app balance with another payment method when paying for an order. It never said why this option isn't available in the app itself.

"Starbucks rigs its payment platform so consumers are encouraged to leave unspent money on their cards and apps," said Chris Carter, campaign manager for the group, in a statement. "A few dollars here and there left on a payment platform may not sound like a lot but it adds up. Over the last five years, Starbucks has claimed nearly $900 million in unspent gift card and app money as corporate revenue, boosting corporate profits and inflating executive bonuses."

In an official response to the complaint, Starbucks said it is "committed to working with the State of Washington to ensure it remains in compliance with all state laws and regulations."

Google and Facebook were fined by a French regulator in 2022 for their use of dark patterns relating to how confusing and difficult it can be to reject their cookies. Google also had to pay almost $40 million in the US for collecting location data on users without their knowledge. Amazon, meanwhile, has been accused of using deceptive UIs to push people into signing up for Prime and making canceling the service an arduous chore.

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"dark pattern"? Is this the latest new-speak? It's lame.

This is just a scummy tactic used by mobile games and fairs/circuses to squeeze more money out of fools who cant do math. What kind of low IQ individual would put money on their starbucks account? Likely the same that buy starbucks NFTs. Just buy your overpriced sugar with your credit card, it isnt hard.
 
Somehow I have a hard time feeling bad about anyone stuck with $3.77 stuck in an app they can't use for a $5.00+ cup of mediocre at best coffee.

 
Somehow I have a hard time feeling bad about anyone stuck with $3.77 stuck in an app they can't use for a $5.00+ cup of mediocre at best coffee.
I have this situation, I'm planning to go in the store and zero out my balance with multiple payment option. My wife and I gave up on Starbucks but have these balances on the app/ Starbucks cards. We decided to go with the Phllips latte go 4300 this past black Friday although one regret the cheaper Phillips 3200 model ( was $550 on 11/23 does the same thing minus the 2 extra profiles.) Those Lattes can add up especially if your spouse is a heavy caffeine drinker as well.
 
Their UK app isn't like this. Min top up amount is £5 and that what it always defaults to for re-loading - You can choose more if you want but it doesn't default to it. They often give extra rewards for paying with the app, and it also accelerates free drink rewards and discounts per drink (free extra shots, toppings, flavour syrups etc) so idk why this is bad?

I get faster free drinks and extras and they get to reduce card processing fees at the very least. I don't understand why this is as bad as the article suggests, because I benefit out of it without it actually costing me anything extra?

(Edit: Ignoring the fact you've gone to a Starbucks in the first place. That's not my point here as I am well aware of cheaper options for better coffee. Sometimes they're just convenient when out and about. We have a rival chain here in the UK called Costa, and they are so much more expensive compared to Starbucks)
 
Could you perhaps... now hear me out... just NOT use the app? Crazy concept!

Never downloaded the Starbucks app, let alone drink their coffee.
Edit: I also think this is a bad name for the concept.
 
Ummm little behind the 8 ball here... this has been going on for years....nothing new here. Why I never use any of those stupid 'points' systems in ANYTHING. Its designed to keep you spending more $
 
Their UK app isn't like this. Min top up amount is £5 and that what it always defaults to for re-loading - You can choose more if you want but it doesn't default to it. They often give extra rewards for paying with the app, and it also accelerates free drink rewards and discounts per drink (free extra shots, toppings, flavour syrups etc) so idk why this is bad?

I get faster free drinks and extras and they get to reduce card processing fees at the very least. I don't understand why this is as bad as the article suggests, because I benefit out of it without it actually costing me anything extra?

(Edit: Ignoring the fact you've gone to a Starbucks in the first place. That's not my point here as I am well aware of cheaper options for better coffee. Sometimes they're just convenient when out and about. We have a rival chain here in the UK called Costa, and they are so much more expensive compared to Starbucks)

I have a feeling this is a practice that most companies now do, hey gimme money on an app, pay with app, and have coffee. Except, you put £5, and got a £4.50 coffee.... they kept 50p in you wallet .... no not your wallet, their bank account, and did that to 2 million people and had £1million extra, and made interest off it, making fortunes, and you stay a poor schmuck. Ok you may have a decent wage, but money is the root of all slavery and big companies doing this in such sucky times is sucky none the less.
On top of this, coupons and cards in some cases claim to expire. Gift cards that expire. I have heard of this, and its insane, it is basically outright theft.
Someone can not buy someone a £20 gift card for example, and it expire, that is insanely shady. I get that someone should use said card, and claim the money, but sometimes, delays, or buying early, pre-emptively for example, should not mean that you get fudged in the A.
Companies have shady practices. Who knew.
There are so many companies that just shouldn't exist, but, governments refuse to bring the hammer down, its a job, it makes money, it pays a tax, it passes go.
 
What should be taken into consideration as a "dark pattern" is their expiring stars (points) after only six months basically forces you to keep coming back so you don't lose your accumulated stars. Starbucks is getting crazy expensive for a basic coffee and the fact that any perks from their program expires is shameful.
 
Just another reason not to do business with SB. There are plenty of less expensive options.
 
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