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HomeHealthSF coffee chain made 'deceptive and misleading' claims, says lawsuit

SF coffee chain made ‘deceptive and misleading’ claims, says lawsuit

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Customers enter Philz Coffee at the Bay Street Emeryville Mall in Emeryville, Calif., on Nov. 24, 2023.

Customers enter Philz Coffee at the Bay Street Emeryville Mall in Emeryville, Calif., on Nov. 24, 2023.

Douglas Zimmerman/SFGATE

Popular Bay Area coffee chain Philz Coffee has been hit with a class-action lawsuit alleging the company “misbrands and falsely advertises” certain products as gluten-free even though they contain gluten. 

Plaintiff Ayaunna Martinez, a San Francisco resident, filed the lawsuit to the San Francisco Superior Court on Jan. 23 on behalf of herself and other class members. The lawsuit alleges that in August 2023, Martinez suffered a severe allergy attack after visiting a Philz Coffee location in Alameda County and consuming a food product that was misrepresented as gluten-free.

As a result, she suffered “substantial bodily symptoms and injuries” and also lost money due to Philz’s “deceptive claims,” said the lawsuit, as she “did not receive what she paid for when purchasing the product.” SFGATE did not hear back from Philz Coffee or Martinez’s lawyer for comment in time for publication. 

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The exact Philz product that allegedly caused Martinez’s allergy attack is not named in the lawsuit. As of Jan. 25, 2024, the menu on Philz Coffee’s mobile ordering app includes an allergen disclaimer, reading, “We cannot guarantee that any of our products are free from allergens.” 

The lawsuit also alleges that the plaintiff directly notified Philz CEO Mahesh Sadarangani of the “false advertising,” but he chose not to change it.

“Philz’s senior officers and directors allowed the product to be sold with full knowledge or reckless disregard that the challenged marketing claims are fraudulent, deceptive and misleading,” read the lawsuit.

The lawsuit is seeking damages for the plaintiff and class members as well as punitive damages and attorneys’ fees. A court meeting has been scheduled for June 26.

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