Federal Judge Dismisses Alt Milk Up-Charge Suit Against Peet’s

A United States District Court judge in Northern California dismissed a year-old lawsuit alleging that Peet’s Coffee discriminated against lactose-intolerant people by charging more for non-dairy milks.

The Peet’s order follows two similar U.S. District Court orders — one in response to a class action suit against a Dunkin franchisee, and another affecting Michigan-based chain Biggby Coffee — in suggesting that coffee chains are not discriminating against lactose-intolerant or milk-allergic customers, so long as prices for individual milks do not differ between customers.

In the Peet’s order, Judge Jon S. Tigar  wrote, “Peet’s pricing policy is facially neutral and applies equally to customers who are not lactose intolerant but prefer non-dairy alternatives in their drinks.”

The judge also wrote that a separate customizations menu within Peet’s stores — including prices for alternative milks, such as oat milk — “does not plausibly reflect any specific intent to target individuals with lactose intolerance or milk allergies.”

Last month, a federal judge in California dismissed a similar suit that alleged Americans with Disabilities Act (ADA) violations against a 10-location Dunkin’ franchisee. The suit, which was brought forth by the same law firm behind the Peet’s class action, was dismissed by a different judge on similar grounds.

Since the lawsuits against Dunkin’ and Peet’s were originally filed, Dunkin’ has joined the growing number of coffee chains to eliminate extra charges for alternative milks, and Peet’s plans to drop all alt-milk-related surcharges on June 4.

A third federal judge in the Western District of Michigan in February dismissed a milk up-charge class action suit brought forth last June against Biggby Coffee. Attorneys representing the plaintiffs are appealing the decision, according to court records.

There are also two separate non-dairy milk lawsuits against coffee giant Starbucks pending in federal courts. Starbucks has also dropped milk up-charges since those suits were originally filed.

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