Starbucks faces U.S. lawsuit over 'sugar-free' protein drink claims

SEATTLE — A proposed class-action lawsuit filed in the United States claims Starbucks falsely advertised eight protein beverages as "sugar-free" when they contain significant amounts of sugar.

The lawsuit, filed Oct. 2 in a Seattle federal court and viewed by CBC News, alleges the venti-sized drinks contain between 13 and 21 grams of sugar per serving due to the naturally occurring sugar in milk.

It accuses the coffee chain of trying to capitalize on "the protein craze" and the nutritional preferences of customers.

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"By naming its beverages 'sugar-free,' Starbucks makes a specific, quantitative and verifiable claim about the nature of these beverages. Consumers rely upon such claims when deciding to purchase such products," the lawsuit says.

It notes that the 21 grams of sugar contained in a venti Sugar-Free Caramel Protein Matcha is roughly equal to five teaspoons of sugar.

"This is almost as much total sugar as is contained in a standard KitKat bar," the lawsuit adds.

A spokesperson for Starbucks told CBC News on Wednesday they believe the lawsuit's claims have "no merit."

"Starbucks has consistently and clearly provided information about its protein beverages, sugar-free options, customization choices and nutritional content … and we intend to vigorously defend ourselves," the spokesperson said.

The lawsuit comes as grocery prices continue to rise faster than overall inflation in Canada for more than a year, with the exception of August.

In January, the price of ground beef increased by more than 10 times the rate of general inflation, according to Statistics Canada consumer price index data analyzed by Marketplace.

Economist Jim Stanford and agriculture professor Mike von Massow say a combination of factors is driving food prices higher, including climate, immigration policies, tariffs and retailer pricing.

Novello Desserts reported in October that a Scotiabank report warned higher diesel and crude oil prices from global conflicts would drive up consumer prices for food and shelter over the next 18 months.

Housing agency's progress

In other consumer news, the federal housing agency Build Canada Homes has committed to supporting the construction of roughly 19,000 affordable units across the country since its launch last year.

Only about 2,000 of these units are currently being built, however.

"I think we can always go faster," Dave Wilkes, president and CEO of the Building Industry and Land Development Association, said in an interview. "I like to say I work for an industry that measures patience in terms of seconds."

Build Canada Homes spokesperson Joshua Coke said in an emailed statement that the agency's work is "just the beginning."

"Canada's housing sector is under unprecedented pressure, with demand for affordable homes far exceeding current supply," Coke said.

"Combatting this housing affordability challenge requires more homes to be built, more quickly, and at greater scale," he added.

The agency became a Crown corporation in July, after the Build Canada Homes Act received royal assent. A large portion of the past year has been spent clearing bureaucratic hurdles, securing land transfers and signing intergovernmental deals.

The housing agency primarily focuses on building non-market housing, where rents are typically linked to income rather than market rates, but it is also partnering with developers to build affordable homes for Canada's middle class.

With files from CBC News