Crumbl Cookies, a rapidly growing gourmet cookie franchise, has faced multiple lawsuits encompassing a variety of legal issues ranging from copyright infringement to consumer protection and privacy violations. These lawsuits have had significant ramifications on the company’s operations, finances, and public image. This article provides a comprehensive overview of the Crumbl cookie lawsuits, outlining the background, allegations, legal claims, impacts, current status, and consumer advice.
Background of the Crumbl Cookie Lawsuit
Crumbl Cookies, founded in 2017 in Utah, has expanded to over 800 locations nationwide. The company’s growth has been accompanied by legal disputes primarily focused on alleged copyright infringement involving unauthorized use of popular music in marketing materials, as well as trade secret disputes with competitor cookie companies. Additionally, Crumbl faces class action claims for alleged deceptive pricing and failure to disclose accurate calorie information on its products. The variety and scale of lawsuits reflect the challenges of rapid expansion in a competitive market.
Parties Involved
The defendants in these lawsuits include Crumbl LLC and affiliated entities such as Crumbl IP, LLC, and Crumbl Franchising, LLC. Plaintiffs range from major entertainment corporations, rival cookie companies, to groups of consumers represented in class actions.
Details of the Crumbl Cookie Lawsuit Allegations or Claims
Key allegations involve several distinct areas:
1. Copyright Infringement
Warner Music Group (WMG) sued Crumbl for “blatant, willful, and repeated” use of protected music tracks in social media posts without authorization. The lawsuit claims Crumbl used at least 159 copyrighted recordings from artists such as Dua Lipa, Beyoncé, Taylor Swift, and Bruno Mars to promote its products on platforms like TikTok and Instagram. Crumbl allegedly continued infringing even after cease-and-desist notices.
2. Trade Secret Theft and Unfair Competition
Crumbl initiated lawsuits against rival companies Dirty Dough and Crave, accusing them of copying proprietary recipes, branding, and marketing strategies. These cases involved allegations of misappropriation of trade secrets and attempts to restrain competitors’ market expansion.
3. Consumer Protection and Pricing Issues
A class action lawsuit alleges Crumbl deceptively charges customers an undisclosed 2.95% “service fee” that inflates prices beyond advertised amounts. Additionally, Crumbl faces allegations of misstating calorie counts on its cookies, violating FDA labeling requirements. Plaintiffs claim these practices mislead consumers and breach state consumer protection laws, including California’s Deceptive Trade Practices Act.
4. Privacy and Data Sharing
A proposed federal class action alleges Crumbl improperly shared customers’ financial and browsing data with its payment processor Stripe without adequate consent, potentially violating the California Invasion of Privacy Act.
Legal Claims and Relevant Laws Involved in the Lawsuit
Across the multiple lawsuits, several legal claims are asserted:
- Copyright Infringement: Claims under the U.S. Copyright Act for unauthorized use of protected sound recordings in advertising.
- Trade Secret Misappropriation: Allegations under the Defend Trade Secrets Act and related state laws addressing theft of proprietary information.
- Consumer Protection Laws: Violations of laws such as the California Consumers Legal Remedies Act, Deceptive Trade Practices Act, and similar statutes in other states concerning fair pricing and marketing.
- Privacy Laws: Including the California Invasion of Privacy Act, addressing unauthorized data collection and sharing.
Health, Financial, Social, or Industry Impacts of the Lawsuit
The lawsuits have sparked industry-wide discussions about intellectual property rights in digital marketing, transparency in pricing strategies, and consumer privacy protections in the fast-growing food franchise sector.
Financially, potential damages include up to $23.85 million sought by Warner Music Group alone for copyright violations. Consumer trust has been affected due to allegations about hidden fees and misleading nutritional information, which may influence purchasing decisions.
Current Status and Recent Developments in the Lawsuit
As of 2025, Crumbl faces ongoing litigation against Warner Music Group with substantial statutory penalties possible if found liable. The company has secured partial victories in trade secret disputes, exemplified by court orders requiring rivals like Dirty Dough to return proprietary information, though requests to halt their business expansion were denied.
The class action lawsuits alleging pricing deception and inaccurate calorie disclosure are progressing through courts, with plaintiffs seeking certification of nationwide classes and compensatory damages. Consumer privacy claims remain under investigation.
Consumer Advice and Business Consequences Related to the Lawsuit
Consumers are advised to carefully review prices and nutritional information when purchasing Crumbl products, particularly through online and app platforms where service fees may be charged separately. Awareness of potential data privacy issues related to online ordering is also recommended.
Businesses operating in similar sectors must ensure rigorous compliance with copyright laws, transparent pricing disclosures, and robust data privacy protections to avoid costly litigation and reputational harm.
Conclusion Summarizing the Significance and Future Outlook of the Lawsuit
The Crumbl cookie lawsuits illustrate the complexities companies face expanding in a competitive, digital-first marketing environment. They highlight the critical importance of protecting intellectual property, adhering to consumer protection standards, and respecting customer privacy.
How these cases resolve will likely shape future marketing practices and franchise operations both within and beyond the baked goods industry, fostering greater accountability and transparency toward consumers and content creators alike.
