I am not an accountant. But I am married to one. One who does not work for Starbucks, but does revenue recognition at the corporate level.
Consumer buys a gift card. That money is not yet revenue as no goods have actually been provided -- just a promise that goods will be provided in the future when the card is redeemed. The money the company got for that card is classified as deferred revenue. Consumer uses the card. Consumer gets their goods. The company accountantss then get to move money from the deferred revenue column to the recognized revenue column.
All is well and good until time passes. Years later and the company has a metric boatload of deferred revenue on the books. There is no reason to keep the oldest as deferred. Especially not when you can crunch the data, create some custom actuary style tables and state with confidence (and here I start making nubmers up as they will vary business by business) that after five years only 1.3% of unspent gift card value be used in the next five years. And in the history of the company, only .000008% of gift card value has been used after ten years. You know what, let's move card value older than five years from deferred to recognized revenue.
Is all corporate ledger shuffling. Starbuck's moving their older deferred revenue into recognized has zero affect on those actual cards. They are still valid. The consumer can still use them. Is a good thing from the government's point of view that the money is not still sitting as deferred. Under the accrual accounting system that almost all corporations use, the revenue is not taxable until it becomes recognized.
Anyhow, this new group and the news articles their press release have inspired is part of an ongoing campaign. About a year ago, a union backed group The Strategic Organizing Center started agitating about gift cards with a focus on Starbucks. Probably because Starbuck's has one of the most widely adopted card programs, and thus the largest revenue numbers could be used. They got some press. The press died down. So it looks like a month ago the same folks decided to create a hollow front organization: Washington Consumer Protection Organization and issued a new press release on the same topic through them. Zero actual individual consumers seem to be associated with the group. Generic website. Zero human names. Pile of fresh social media accounts. Looks like a Potemkin village of a grassroots group.
This ask of this front group tells the true story.
They just want the money that woud be shuffled from deferred to recognized to instead be confiscated by the state.