Peet’s Coffee Defeats Alternative Milk Surcharge Bias Lawsuit

Peet’s Coffee Inc. convinced a federal judge to dismiss allegations that the company discriminates against the lactose intolerant by charging extra for non-dairy alternative milks.

“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,” Judge Jon S. Tigar of the US District Court for the Northern District of California said Thursday.

• The proposed class action alleged the coffee purveyor violated the Americans with Disabilities Act by failing to make accommodations for people with milk allergies and imposing a surcharge despite a lack of meaningful differences between the cost of regular and non-dairy milks
• Dunkin’ Donuts LLC previously defeated a similar lawsuit brought by the same law firm
• Tigar said Peet’s Coffee’s menus neither “solely target people with lactose intolerance nor charge higher prices for the exact same drink from some separate menu for people without lactose intolerance”

The consumers were represented by Keith Gibson Law PC. Peet’s Coffee was represented by Hunton AK.

The case is Munoz v. Peet’s Coffee Inc., N.D. Cal., No. 4:24-cv-01764, 5/22/25.