Starbucks sued over 'sugar-free' protein drinks that contain up to 21 grams of sugar

A 16-ounce Starbucks Sugar-Free Caramel Protein Matcha listed on the company's U.S. website contains 16 grams of sugar — nearly half again as much as a single Reese's peanut butter cup, which has 11 grams. The 20-ounce version has 21 grams. Yet the word on the menu is 'sugar-free.' That contradiction is now the subject of a federal class-action lawsuit filed late Friday in Seattle.

The suit, filed by law firm Hagens Berman on behalf of three consumers from California, New York, and Washington, accuses Starbucks of falsely advertising eight of its protein beverages as 'sugar-free' when they actually contain between 13 and 21 grams of naturally occurring sugar per serving. The plaintiffs contend the labeling is 'false, deceptive and unlawful' and that Starbucks violated federal labeling regulations.

The eight drinks named in the suit are the Sugar-Free Vanilla and Caramel Protein Lattes, the Vanilla and Caramel Protein Matchas, and their iced versions. Starbucks introduced the protein drink line in September 2025 to meet consumer demand for functional beverages and compete with rivals such as Dutch Bros, which launched protein-enhanced coffee drinks in 2024.

Consumers avoid sugar for various reasons, whether that be general health, diabetes and blood glucose levels or other factors, and for many, a staunch mislabeling like this is significant.— Steve Berman, co-founder and managing partner, Hagens Berman

Starbucks' defense rests on a distinction the company says it has made clearly all along: the sugar in these drinks is lactose that occurs naturally in the protein-boosted milk used to make them. The company says it does not add sugar and uses sugar-free syrup for flavoring. On its website Monday, Starbucks did display the gram count for sugar in each beverage alongside the 'sugar-free' label, and noted the drinks were made 'without added sugar.'

We believe these claims have no merit. Starbucks has consistently and clearly provided information about its protein beverages, sugar-free options, customization choices and nutritional content across product announcements, menus, marketing materials, Starbucks.com and the Starbucks app, and we intend to vigorously defend ourselves in this matter.— Starbucks spokesperson

The legal question at the center of the case is whether 'sugar-free' can lawfully appear on a product label when the sugar present is naturally occurring rather than added — and whether disclosing the gram count elsewhere on a menu is sufficient to offset a prominent 'sugar-free' name. Those are questions a federal court will now have to answer.

For context on how competitors handle similar products: Dutch Bros markets its lower-sugar caramel protein drink not as 'sugar-free' but as the 'Hopscotch Zero Sugar Added Protein Latte.' The 16-ounce iced version contains 7 grams of sugar and 11 grams of protein. The comparable 16-ounce iced Starbucks Sugar-Free Caramel Protein Latte contains 9 grams of sugar and 29 grams of protein.

The lawsuit asks the court to award damages to U.S. consumers who purchased the drinks and to order Starbucks to stop using the 'sugar-free' label on products that contain sugar. No trial date has been set and the case remains in its earliest stage.

Why it matters — Anyone who orders Starbucks protein drinks to manage blood sugar, diabetes, or calorie intake may be consuming far more sugar than the menu name suggests — and a federal court will now decide whether that label is legal.

Sources differ on Whether the 'sugar-free' label on Starbucks protein drinks is lawful and accurate: The label is 'false, deceptive and unlawful'; the drinks contain 13–21 grams of sugar and violate FDA labeling rules. (seattletimes.com (plaintiffs' position)) vs The claims have no merit; sugar comes from naturally occurring lactose in protein-boosted milk, not added sugar, and nutritional information is clearly disclosed on menus and the app. (seattletimes.com (Starbucks' position))

Reported by reuters.com, seattletimes.com, staradvertiser.com, arkansasonline.com