Starbucks Hit With 'Ethical' Lawsuit Alleging Abuse, Bad Practices on Farms The National Consumers League filed the lawsuit in Washington, D.C. on Wednesday.

By Emily Rella

Opinions expressed by Entrepreneur contributors are their own.

Starbucks was hit with a lawsuit this week after a consumer group accused the chain of misleading claims that it's "committed to 100% ethical coffee sourcing."

The National Consumers League claimed that the coffee giant's farms perpetuated abuse, citing a case from 2022 when local authorities found that 17 employees on a coffee farm in Brazil were not provided protective equipment.

"We take allegations like these extremely seriously and are actively engaged with farms to ensure they adhere to our standards," Starbucks said in a statement, noting that the company planned to "aggressively defend against the asserted claims."

Related: Starbucks Odyssey NFT's Sell Out in Minutes

The lawsuit alleged that Starbucks farms "have committed documented, severe human rights and labor abuses, including the use of child labor and forced labor as well as rampant and egregious sexual harassment and assault," also citing a report from BBC in 2023 that claims sexual harassment and "gender-based violence" were occurring at a Starbucks tea supplier in Kenya. Starbucks immediately suspended sourcing from the farm upon the report.

Starbucks's website claims that its coffee is 99% ethically sourced.

"Starbucks coffee is verified 99% ethically sourced. We are working with other industry leaders to make coffee the first sustainable agricultural product," the company says. "We plan to invest in training and financing for coffee farmers and provide 100 million coffee trees by 2025."

Related: Starbucks Slammed By Customers For 'No Water' Price Increase

The coffee chain had a strong year, reporting a 39% increase in net earnings for Q4 of fiscal 2024 as compared to the year prior, with operating income jumping over 42% in the same period.

Starbucks did not immediately respond to Entrepreneur's request for comment.

Emily Rella

Senior News Writer

Emily Rella is a Senior News Writer at Entrepreneur.com. Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

JPMorgan Shuts Down Internal Message Board Comments After Employees React to Return-to-Office Mandate

Employees were given the option to leave comments about the RTO mandate with their first and last names on display — and they did not hold back.

Business News

Zillow Predicts These 10 Places Will Have the Hottest Housing Markets in 2025

Zillow predicted that the hottest housing market of 2025 will be Buffalo, New York. Here's why.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

'Masculine Energy Is Good': Mark Zuckerberg Tells Joe Rogan He Thinks Companies Need More Aggression

On the most recent episode of "The Joe Rogan Experience," Meta CEO Mark Zuckerberg said corporate culture has become "neutered."

Business News

'More Soul-Crushing Than Ever': Popular Hiring Platform Finds Around 20% of Its Postings Were 'Ghost Jobs'

Is that job listing too good to be true? There's a one-in-five chance that it might be.

Growing a Business

5 Risk-Taking Lessons From Founders Who Bet Big and Won

Discover the bold moves and strategic risks that catapulted these entrepreneurs to success. Learn how their fearless decisions can inspire your own path to growth.