Starbucks Customer Sues For $114 Million After Coupon Turned Down
from the don't-they-understand-by-now? dept
In the early web days, there were a few examples of companies sending out online coupons -- but they quickly learned the potential downsides, such as the coupons spreading much more widely than planned and/or the coupons being faked. Many companies learned to ditch online coupons altogether. One company that was a victim, back in 2002, was Starbucks. A fake online coupon for a free drink was sent around, and stores were inundated with people claiming a free drink. It's a story that even made Snopes.com -- and generated a ton of ill-will towards Starbucks. So you would think (wouldn't you?) that the folks involved with Starbucks promotions would know to be extra careful about such things. Turns out you'd be absolutely wrong. A few weeks ago, Starbucks sent out an online email coupon to some employees, suggesting they pass it on to some friends -- which they did. And those friends passed it on, and those friends passed it on, and it got posted to deal boards, and soon pretty much everyone saw it. So, Starbucks, who apparently learned nothing from the event in 2002 canceled the coupon. In this case, it was even worse than last time. In 2002, the coupons were fake. This time around they were real -- so customers are even more pissed off. However, it seems some are going a bit too far in their anger at the lack of a free drink. One customer has hired a lawyer to sue Starbucks for $114 million over the banned coupons. Yes, because she was unable to get a free drink. This seems like a lawsuit unlikely to get very far. Of course, some smart competitors have already stepped up and said that they will accept the denied Starbucks coupons. Starbucks might want to do the same thing, and make sure that every new employee in the promotions department learns about both the 2002 event and this latest one.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
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we do
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Re: we do
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Re: Re: we do
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depends on what the coupon is for, doesn't it?
She sent them to me everytime and I spread them around to all my co-workers but apparently not everyone did because they still do it twice a year. Of course, the are only good at Levi stores, of which there are only 7 or 9 around the country, so maybe Starbucks can learn from that.
Send a coupon but make it good only at one store per state or something like that.
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Sad part
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Apples and Oranges
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And the amount awarded to the plaintiff
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starbucks coupon
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Re: starbucks coupon
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Re: Re: starbucks coupon
Yeah, yeah, sure, sure, severe burns, skin grafts, blah blah blah. WTFever. This is not the freaking point, okay? Had The Clown hosed her down in scalding coffee, I could see it being McDonald's fault, but that's not what happened. She took the lid off of the cup of coffee, wedged it between her thighs, and drove off. The basis of her lawsuit is the same as if I were to sue the Good Humor company for injuries caused by running with a popsicle stick in my mouth (for example).
She suffered self-inflicted injuries. She is an idiot. The judge that let her win is an idiot. Anyone who does not understand this is an idiot.
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Re: starbucks coupon
Or so I heard. Somewhere. Probably in a bar.
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Re: starbucks coupon
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Turned into a class action suit, it would make some sense.
A business put out an offer. A written contract. There was no printing mistake made, the company simply decided for reasons immaterial to the consumer they don't wish to honor their written contract.
That is called bait and switch and is illegal. 'Yes, I know you have a legitimate coupon that we issued, but we won't give you the free drink we promised. However, we would gladly sell it to you at the full price!" (said with a smile).
They should be sued.
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Re:
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Just plain stupid.
Boo freaking hoo to everyone who could not redeem their stinking coupon for a free drink. Strap on a pair of stones and maybe actually buy it if you need it that bad. I am sure you could even find the change laying out on te street in front of that crap factory from other fancy named coffee drinking knuckleheaded sheep.
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Re: Just plain stupid.
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Just plain stupid.
Boo freaking hoo to everyone who could not redeem their stinking coupon for a free drink. Strap on a pair of stones and maybe actually buy it if you need it that bad. I am sure you could even find the change laying out on te street in front of that crap factory from other fancy named coffee drinking knuckleheaded sheep.
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Re: Just plain stupid.
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Starbucks coupon
As a graphic designer, though, I know that a coupon without a disclaimer is just about as good as cash, so Starbucks should just pony up and take them up to a certain date and then learn from it's two mistakes for the future. It's likely they'll lose in court and have to offer some sort of settlement, but that crazy caffeine-deprived mad woman won't get her $114 million. Not even close.
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It punishes idiots that sue over really really stupid stuff and the lawyers the take the cases. Win Win as I see it.
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Free coffee
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i wish Starbucks lose...
they've gotten way too big and arrogant where they can set up shop anywhere and charge 12 ounce cup of coffee that's more expensive than a gallon of gas which we complain just about every single day...
Starbucks did something stupid with online coupon and later said it's no good because it got popular...they make enough money where a free $1.25 coffee won't make a dent on the profit if it's done for a few days...
not EVERYONE goes to Starbucks anyway....
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Imagine how big the lawsuit would be when she spilled her free drink on her lap!!
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Would it make a difference...?
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What about in other countries?
What happens when these coupons hit the non-US stores? Don't know the EU restrictions on this sort thing, but Starbucks might be in for a big problem here...
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written contract?
Point me to the law exactly, that defines "bait and switch" and makes it illegal. It seems you've confused "immoral" with "illegal" - because if your referring to the idea that a company cant represent one thing to hook you in, and then change it completely once they have you on the phone or in the office - I dont know what planet your from because that happens on a regular basis. If you dont believe me, simply watch for your cable company's next ad about all the promotions they're running - then call them up and try to get one and after being on hold for 30 minutes, you probably wont "qualify" - but they will be more than willing to give you the same service at an inflated price. Just because Starbucks isnt masking it as well doesnt change anything.
I have a marvel idea. How about instead of trying to take other people's money - try making your own. Not only should this lawsuit be thrown out - this women should have to pay starbuck's court and legal fees for wasting everybody's time and tax payers money.
I dont care if you like Starbucks or not, if you think they're a "bully" company or not, or if your simply an idiot - they're a business, they provide a service and they have the right to do what they please with that service and charge what they want for that service and promote that service however they see fit - just like you have the right, if you dont like it, to go somewhere else.
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Re: written contract?
From the US FTC: "No advertisement containing an offer to sell a product should be published when the offer is not a bona fide effort to sell the advertised product. [Guide 1]"
And the definition from the FTC: "Bait advertising is an alluring but insincere offer to sell a product or service which the advertiser in truth does not intend or want to sell. Its purpose is to switch consumers from buying the advertised merchandise, in order to sell something else, usually at a higher price or on a basis more advantageous to the advertiser. The primary aim of a bait advertisement is to obtain leads as to persons interested in buying merchandise of the type so advertised."
You can read the entire guide if you like: http://www.ftc.gov/bcp/guides/baitads-gd.htm
Don't slip on your soap box.
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Re: written contract?
What, we have to do your research for you? Lazy, lazy, lazy.
I won't do your research for you, but I'll be happy to give you a nudge in the right direction. The phrases you may wish to pass through Google are "false advertising", "unfair and deceptive commerce", "FTC Act", and "Lanham Act".
A book report is due by the end of the day.
because if your referring to the idea that a company cant represent one thing to hook you in, and then change it completely once they have you on the phone or in the office - I dont know what planet your from because that happens on a regular basis.
Too true. However, just because businesses regularly get away with this does not make it a legal practice. If we could be bothered to be more vigilent as consumers and hold their feet to the fire... but, nah. That's almost like effort.
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Starbucks is crap.
Want proof? try drinking 1 cup of coffee and take 2 Vivarin pills one morning, and then drink a cup of Starbucks the next and notice the difference in your sweat and urine smells throughout the day--- you can smell the Starbucks leaving your system.
oh and back to the topic: I say let them get sued, and lose, frivolous as it may be, she was offered a free cup of crap and by god don't deprive her of it.
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Re: Starbucks is crap.
Try lining it with felt. Protects you from CIA brain readers the same, but is much more comfortable.
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moron.
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Re: moron.
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to me its like defending exxon or something, who gives a shit, they are dirty rat bastards, 114 million is nothing, yea the lady and lawyer are being greedy, but at the same time if you want a big corporation to learn any lessons, they need to have someone get their attention, and a couple of thousand dollars, isnt going to turn anyones head at starbucks
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Re:
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Rediculous on the other hand ... deffinitely. There is no way that a cup of coffee is worth $114M, and I have no doubd she is only interested in a phat settlement. Though, if they do settle (and the case is golden) then Starbucks is in a very tough spot because then anyone who has the internet will print the coupon as a ticket to print money. And because nothing ever dies on the weenernet, Starbucks better find a way to win this case - otherwise they've got a long haul to fight.
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Starbucks Coupons
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I still got my 6 free drinks...
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You're Not Special
Just thought I'd clarify.
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Re: You're Not Special
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It's a coupon! FOR CRYING OUT LOUD!!!
This is like saying I am going to sue Wal-Mart because my hamburger went bad before the expiration date.
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Re: It's a coupon! FOR CRYING OUT LOUD!!!
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Re: Re: It's a coupon! FOR CRYING OUT LOUD!!!
Oh, yeah, you can really spot welfare check day at the local Starbucks. Raising the prices is just going to punish the poor, ain't it?
What economic bracket do you figure the $6/cup coffee crowd is in, anyway? I can afford to go to Starbucks, but I refuse. It's overpriced swill. I brew my own, thankyouverymuch, and both tastes better and costs less.
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Re: Re: Re: It's a coupon! FOR CRYING OUT LOUD!!!
While it's true that most lower-income individuals don't frequent Starbucks, I think WCSTANTON DOTCOM has a point about the employees. When other expenses go up, wages can be cut, or workers can be laid off. My company always tells its managers that the most controllable cost is labor. Starbucks sure doesn't want to see its profit margins dwindle, so if the lawsuit creates an expense that does hurt the company, it won't be surprising to see the company cut its labor costs to make up for it.
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I'm a, YES, BARISTA.
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re:you're not special
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Fake coupons
Latest strategy in the US seems to be sue and you don't have to work for the rest of your life.
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I should have sued them for a 100 million and another 100 million for wasting my time.
Probably would have won in America. Here I got $30 in vouchers.
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They should just take their lumps...one or two?
Should they be punished legally? Maybe for a few dozen servings of coffee. But millions of $$s?
No way!
Really, how would it benefit them to defraud consumers in this manner?
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114 million
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Bait & Switch
As a kid I was working a part time job at a local grocery store, and one day we threw a little all-day-long bbq for our customers that we also advertised in the local newspaper. Halfway thru the day we ran out of meat, so I asked my boss if we should just close down the bbq. He said, hell no, we advertised it as an all day thing, if we close now it would be misleading advertising to get people into the store. So we had to get more and keep it going until the end.
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Coupons
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I know!
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starbucks coupon
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I just don't get it...
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doesn't starbucks give all it's employess healthcare coverage? didn't that stem from the owner's dad getting hurt on a job and not having insurance? so, in order to pay for the insurance, the coffee is more expensive.
second, panera, or any local coffee shop....the coffee is the same price. regular coffee's from starbucks are around 2 bucks. if you want the fancy fufu drinks, that'll cost you, but just the same as everywhere else.
next, i remember a t.d. article about google cupons, and people sying that the cupons aren't worth anything. but i guess this one is?
now that the cupon is on the "market" how will starbucks honor the cupon? they can't claim to not honor it, because it didn't have an exp date. if they say they won't...it's so called bait and switch. companies have the right to do so. this wasn't some...give me more money scheme, it's just a promotion that got out of hand. so, in order to protect themselves, they have to cut the offer. remember subway's ticket/stamp program. 1 stamp for every 6" or sald you bought. the stopped that a few years back. they said, listen we know we've had this for some time, but we are stopping. stamps won't be distributed after date1. the stamp books won't be accecpetd after date2. I'm sure that there were people missing one stamp, or came in the day after and were told no.
I was a barista at mcdonalds for sometime. (boy that sounds stupid) and we had people come in with halloween cupons in mid july, or stuff from BK (really retarded) and we refused. no one got all legal on us. ohwell
is the lawsuit a good one? maybe. it's sure not worth 114mill. what does that entail? 114 for pain and suffereing? she had a caffine withdrawl? not worth 114, she coulda bought a can of pop from walmart for a quarter.
now it is true that business should be held accountable for their actions, we don't want them getting careless. i doubt starbucks is careless. I make good money, but i don't drink starbucks. It's not that it's expensive or whatnot, i just don't like coffee. plus, if i ever get the urge for it, there are planty of local places with free refils and such. so....that's that.
cupon worth 114mill. i thought it was more like 1/20th of a cent
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Idiots...
From the US FTC: "No advertisement containing an offer to sell a product should be published when the offer is not a bona fide effort to sell the advertised product. [Guide 1]"
1. It was a "bona fide effort" since the stores were all honoring the promo till it got out of hand.
2. Not that this really applies anyway since it was an offer to give away something and not sell it.
And the definition from the FTC: "Bait advertising is an alluring but insincere offer to sell a product or service which the advertiser in truth does not intend or want to sell. Its purpose is to switch consumers from buying the advertised merchandise, in order to sell something else, usually at a higher price or on a basis more advantageous to the advertiser. The primary aim of a bait advertisement is to obtain leads as to persons interested in buying merchandise of the type so advertised."
...a free coupon that they stopped honoring has nothing to do with selling anything since they were giving it away, if you buy in to the bait and switch comments your just an idiot plain and simple. A company trying to do a good will promo to its employees got a bit out of hand and they decided to discontinue honoring the coupon. What's all the fuss about?
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Bait and switch...?
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RE RE: Written Contract?? Bait and switch??
I've read the same FTC crap you have. #54 described why it isnt illegal as referred to in this case so I dont have to. What I was looking for, instead of irrelovent and out of context scraps from the FTC was more an example of where the illegality of this actually manifested and a company doing it actually suffered consequences. That doesnt exist either. (Of course, I mean as THIS CASE dictates.)
Bait and switch is the attempt to SELL something and either selling it and switching it, or making it unavailable and switching it with a more expensive product that is. That doesnt apply here - and this almost never applies in the real world because there are so many "work arounds." I'd think you would have gotten that from actually reading what you were pasting. I mean come on - you really buy that crap in pastes from the FTC? Even aside from this case - exactly what as defined as "unfair" and "should not" happens every day a million times over. I may have used a poor choice of words at the beginning of that paragraph but it far from negates the point. Refer to the rest of the post.
Its amazingly easy for companies to get around "false advertising" and "bait and switch laws" - but you know what? Starbucks isnt getting around anything because they did nothing wrong.
Bottom line, if I say I'm going to give you something for free and then change my mind - you have nothing to say about it - and calling it bait and switch is just plain idiotic.
Oh, and you dont have to worry about me slipping. As long as people lack common sense, it wont be a problem.
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RE RE: written contract
Dont you hate when people make or defend a claim and when you disagree they tell you to do the research? You made the claim, its your job to proove it, not mine. Maybe if you would have tried to do that, it might have become obvious that bait and switch doesnt apply here.
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no.
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Ok ...
According to Wikipedia this applies in the US as well?
http://en.wikipedia.org/wiki/Invitation_to_treat
So the offer was made not to mislead people. It got out of hand and was so withdrawn. Hence the case is pointless.
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get off it!!
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other countries are right when they put down the U
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RIDICULOUS!
why is someone being so stupid to sue the number #1 coffee chain in the world? why? how stupid can you be. we're not McDonalds we're STARBUCKS!!
quit your bitching about coupons. can't you afford a cup of coffee btw?
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1) It offered a free cup of coffee for a month. If a cup of coffee is $4 then that is $120 a person assuming they would claim it every day (and the coupon did not specify that you could only use it once. If 10 people were denied that is $1,200, if it was 1,000 that is already $120,000.
2) Starbucks is assuming that they will increase their business by having people go there and once their coupon is denied, people will buy their coffie otherwise. This is absurd. It is also illegal.
3) Starbucks assumed the risk when they gave out the coupons. Stop feeling bad for Starbucks, and stop complaining. Go to law school or read a book before you all talk out of your ass again.
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Starbucks coffee blows, they are only good for selling their crappy coffee coupons on the bay and making money. I love coffee, spent 6 years in Spain and italy, a year in the carribean and wouldnt spend a dime at strabucks !!! I get free coupons for them all the freaking time and never, ever use them to buy their over priced swill! I sell em on fleabay
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dumbest shit i ever read
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