Uploaded by FinancialNewsOnline on Nov 14, 2011
Starbucks Corp. (NASDAQ:SBUX) has stopped its surcharge on bags of coffee beans weighing less than a pound after being fined over the practice. The Massachusetts Office of Consumer Affairs and Business Regulation found in August that the the seattle-based coffee company was not informing customers about the charge, tacking on an extra $1.50 for bags of coffee beans weighing less than a pound.
Under Massachusetts law, the company is required to either post signs in the store or have employees notify customers about the charge. Even putting the charge on the receipt would have been acceptable.
But, Starbucks did not adhere to the rule and the state fined the company $1,575 for overcharge violations at five stores. Starbucks stopped adding the charge nationwide on November 7.
Starbucks (NASDAQ:SBUX) has potential upside of 10.5% based on a current price of $44.02 and an average consensus analyst price target of $48.65.
Under Massachusetts law, the company is required to either post signs in the store or have employees notify customers about the charge. Even putting the charge on the receipt would have been acceptable.
But, Starbucks did not adhere to the rule and the state fined the company $1,575 for overcharge violations at five stores. Starbucks stopped adding the charge nationwide on November 7.
Starbucks (NASDAQ:SBUX) has potential upside of 10.5% based on a current price of $44.02 and an average consensus analyst price target of $48.65.
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