Non-dairy milk fees: Quebec judge approves class-action lawsuit targeting major coffee chains

In line with the growing popularity of coconut-based products, coffee giant Starbucks has announced plans to add coconut milk to their shelves as non-dairy alternative in the U.S. (Starbucks)

A Quebec judge has authorized a class-action lawsuit that alleges major coffee chains charged unfair prices for alternatives to cow’s milk.

The Montreal lawyer for the plaintiff said the practice is a clear case of “price gouging” customers who can’t or choose not to drink regular milk and opt for other options, like soy, almond and oat milk.

“I think it’s unfair, I think it’s egregious, and that’s why we wanted to hold them accountable,” said Joey Zukran, a lawyer at LPC Avocats, in an interview Friday.

According to the ruling handed down on Wednesday, Starbucks admitted that it incurs an additional $0.12 for substituting cow’s milk for a non-dairy option, while it charges the customer $0.80 for the alternative.

“By its own admission, Starbucks therefore charges consumers more than six times the cost it incurs when it replaces cow’s milk with plant-based or lactose-free milk in its beverages,” explained Superior Court Justice Catherine Martel in her judgment.

“Indeed, it does not appear frivolous or manifestly unfounded to argue that it is disproportionate to charge the consumer more than six times what it costs the merchant to substitute cow’s milk with plant-based milk in their tea or coffee, and that this disproportion is sufficiently significant to cause serious harm to the consumer.”

The class-action lawsuit names Starbucks, Tim Hortons, and Second Cup as defendants. The plaintiff is Liel Ohayon, a Montreal resident who is vegan and a regular customer of Starbucks and Tim Hortons, who took issue with the fact that her drink of choice — a matcha latte — would cost $6 at Second Cup and Starbucks with cow’s milk but $6.80 with soy or oat milk.

Zukran told CTV News that it will be up to the judge to decide whether or not charging six times its cost amounts to abuse under Quebec’s Consumer Protection Act.

“Individually, it might not appear as an astronomical level, but when you take the total sales figures on an aggregate basis for all coffees or beverages sold across Quebec, for which a non-dairy substitute was added at a cost of 80 cents per item, well, that could be an amount in the millions of dollars, potentially,” he said.

The class-action lawsuit includes all consumers in Quebec who paid a premium for non-dairy milk in their beverage at Starbucks (between Dec. 30, 2021 and Nov. 7, 2024), Second Cup (between Dec. 30, 2021 and Feb. 27, 2025), and Tim Hortons (between Dec. 30, 2021 and Jan. 2, 2025).

In the fall of 2024, Starbucks announced it was no longer charging customers an extra fee for non-dairy milk. Tim Hortons followed suit in January 2025, and Second Cup did the same the following month.

Zukran said these companies should still be held liable for their previous business practices and that, depending on the outcome of the lawsuit, it could set a precedent and encourage other coffee shop brands to take similar action.