Economics

Dunkin’ faces a moo-ving class-action suit from the lactose intolerant

Published

12 months ago

April 3, 2024

Business Finance News

Listen to this story.

Enjoy more audio and podcasts on iOS or Android.

Your browser does not support the <audio> element.

DUNKIN’ sells about 60 cups of coffee every second. That works out to be about 2bn cups a year. The coffee-and-doughnut chain brags there are 25,000 ways to order coffee in its shops. A recently filed class-action lawsuit claims that customers ordering plant-based or lactose-free milk with theirs are charged $0.50-2.15 more than those ordering cow’s milk. This amounts to discrimination under the Americans with Disabilities Act (ADA), the plaintiffs argue.

The ADA became law in 1990. Its aim was to give disabled people equal access to places of business, and expanded it in 2008 to broaden the definition of disability. The suit asserts that lactose intolerance (the gastronomical symptoms of which are not at all pleasant) is a disability and that the plaintiffs are entitled to damages from Dunkin’.

Some are sceptical that this violates the ADA. Many consuming plant-based drinks are doing so because of taste or because they think cows’ burps are bad for the planet. The lawsuit also asserts there is no material difference in cost between milk and non-dairy alternatives. But Ben Pierce, an analyst at the Good Food Institute, says that “gallon for gallon, plant-based milk prices were 87% higher than conventional milk in 2022.”

Arlene Kanter, head of the disability law and policy programme at Syracuse University, says the plaintiffs have a strong case. Lactose intolerance meets the definition of disability as it is a substantial limitation on a life activity (the right to drink supersized takeaway coffee). If a wheelchair-bound driver needs helps filling their car with petrol, petrol stations legally cannot charge them extra. Keith Gibson, the lawyer who represents the plaintiffs, says that “Dunkin’ Donuts does not have to offer soy, almond or oat milk for its coffee or lattes. But once they do, the surcharge then is discriminatory.”

Dunkin’ has until March 4th to respond to the complaint. Some chains, such as Tim Hortons, do not charge for non-dairy milk. Starbucks was sued in 2022 for charging more for plant-based milk. That case is still pending. Meanwhile, even the lawsuit’s named plaintiffs intend to continue going to Dunkin’. ■

Stay on top of American politics with Checks and Balance, our weekly subscriber-only newsletter, which examines the state of American democracy and the issues that matter to voters.

Economics

DOGE comes for the data wonks

Published

14 hours ago

March 30, 2025

Business Finance News

FOR NEARLY three decades the federal government has painstakingly surveyed tens of thousands of Americans each year about their health. Door-knockers collect data on the financial toll of chronic conditions like obesity and asthma, and probe the exact doses of medications sufferers take. The result, known as the Medical Expenditure Panel Survey (MEPS), is the single most comprehensive, nationally representative portrait of American health care, a balkanised and unwieldy $5trn industry that accounts for some 17% of GDP.

Economics

Checks and Balance newsletter: Who is (or was) the smartest person in government?

Published

2 days ago

March 29, 2025

Business Finance News

Checks and Balance newsletter: Who is (or was) the smartest person in government?

Economics

Consumer sentiment worsens as inflation fears grow, University of Michigan survey shows

Published

2 days ago

March 28, 2025

Business Finance News

A shopper pays with a credit card at the farmer’s market in San Francisco, California, US, on Thursday, March 27, 2025.

Bloomberg | Bloomberg | Getty Images

The deterioration in consumer sentiment was even worse than anticipated in March as worries over inflation intensified, according to a University of Michigan survey released Friday.

The final version of the university’s closely watched Survey of Consumers showed a reading of 57.0 for the month, down 11.9% from February and 28.2% from a year ago. Economists surveyed by Dow Jones had been expecting 57.9, which was the mid-month level.

It was the third consecutive decrease and stretched across party lines and income groups, survey director Joanne Hsu said.

“Consumers continue to worry about the potential for pain amid ongoing economic policy developments,” she said.

In addition to worries about the current state of affairs, the survey’s index of consumer expectations tumbled to 52.6, down 17.8% from a month ago and 32% for the same period in 2024.

Inflation fears drove much of the downturn. Respondents expect inflation a year from now to run at a 5% rate, up 0.1 percentage point from the mid-month reading and a 0.7 percentage point acceleration from February. At the five-year horizon, the outlook now is for 4.1%, the first time the survey has had a reading above 4% since February 1993.

Economists worry that President Donald Trump’s tariff plans will spur more inflation, possibly curtailing the Federal Reserve from further interest rate cuts.

The report came the same day that the Commerce Department said the core inflation rate increased to 2.8% in February, after a 0.4% monthly gain that was the biggest move since January 2024.

The latest results also reflect worries over the labor market, with the level of consumers expecting the unemployment rate to rise at the highest level since 2009.

Stocks took a hit after the university’s survey was released, with the Dow Jones Industrial Average trading more than 500 points lower.

Get Your Ticket to Pro LIVE

Join us at the New York Stock Exchange!
Uncertain markets? Gain an edge with CNBC Pro LIVE, an exclusive, inaugural event at the historic New York Stock Exchange.

In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12.

Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!