Starbucks, the world’s largest coffee brand, is facing a lawsuit filed in a Washington, D.C., court by a consumer advocacy group. The group alleges false advertising, claiming that Starbucks sources coffee and tea from farms with human rights and labor abuses, despite promoting a commitment to ethical sourcing. The National Consumers League, leading the case, asserts that Starbucks misleads the public by marketing a “100% ethical” sourcing commitment while knowingly obtaining products from suppliers with documented human rights violations.
The lawsuit references specific instances of human rights and labor abuses on coffee and tea farms in Guatemala, Kenya, and Brazil. It accuses Starbucks of continuing to purchase from these suppliers despite documented violations. The company’s spokesperson did not immediately respond to the allegations but previously stated that they take such claims seriously and actively engage with farms to ensure adherence to standards outlined in their Global Human Rights Statement.
In Brazil, labor officials have reportedly cracked down on Starbucks suppliers for abusive and unsafe practices, including garnishing equipment costs from farm workers’ wages, lack of clean drinking water, personal protective equipment, and employment of underage workers. In 2022, Brazilian inspectors rescued 17 workers, including three minors, from “modern slavery” at a coffee farm certified by Starbucks a month earlier.
Starbucks, which operates 10 “farmer support centers” globally, responds to reported labor abuses by expressing deep concern and committing to thorough investigations. However, the company does not release public lists of certified suppliers, making it challenging to track the frequency of labor abuses within its supply chain. Ethical supply chain challenges, especially in agriculture, are noted as a broader industry issue, with the lawsuit highlighting the impact of large players like Starbucks on shaping supply chain integrity if their ethical commitments are substantiated.
Source: CNBC
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