Peet’s Coffee Latest Target in Legal Fight Over Nondairy Milk Upcharges

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One law firm keeps suing over nondairy milk surcharges. The latest target? Peet’s Coffee. 

Consumers are pushing back against upcharges for nondairy milk, fueling a wave of lawsuits against coffee companies. One law firm has led the charge, filing numerous cases in recent years. The latest filing against Peet’s Coffee was dismissed by a California judge last week.

Keith Gibson Law, P.C., has filed lawsuits against numerous coffee chains, including Dunkin’ and Starbucks. In the suits, the law firm alleged that the brand’s alt-milk surcharges violated the Americans with Disabilities Act by forcing lactose-intolerant customers to pay extra for their drinks. Peet’s charged up to 80 cents extra to swap nondairy milk for drinks like lattes and cappuccinos. 

Like the Peet’s case, previous lawsuits have been unsuccessful. Judge Jon S. Tigar of the US District Court for the Northern District of California said in the most recent ruling that “Peet’s pricing policy is facially neutral and applies equally to customers who are not lactose intolerant but prefer nondairy alternatives in their drinks.”

Interestingly, Peet’s stopped charging customers more for alternative milks in March after facing pressure from the animal rights group PETA. Likewise, Starbucks stopped charging extra for nondairy milk in October 2024 and Dunkin’ in February 2025. 

Keith Gibson Law claimed responsibility for Dunkin’s move. The firm issued a statement to USA Today, stating, “We believe our pending lawsuit against Dunkin Donuts and its franchisees played a vital role in forcing the decision by Inspire Brands to eliminate the Illegal Nondairy Alternatives Surcharge.”

Read the full story on the latest alt-milk lawsuit from Bloomberg Law here.

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Fionn Pooler

Fionn Pooler is a coffee roaster and freelance writer currently based in the Scottish Highlands who has worked in the specialty coffee industry for over a decade. Since 2016 he has written the Pourover, a newsletter and blog that uses interviews and critical analysis to explore coffee’s place in the wider, changing world (and also yell at corporations).

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