Following up on our opens in a new windowprevious post, General Mills quickly opens in a new windowreversed course over the weekend and dropped its new mandatory arbitration language from its terms of use. The controversy started last week when General Mills quietly amended its terms of use and inserted language which would have waived a consumer’s right to sue General Mills in court in the event of a dispute. The expansive arbitration provision arguably would have affected consumers who interacted with General Mills in a variety of innocuous ways, including downloading coupons, participating in sweepstakes, or joining its social media sites.
opens in a new windowResponding to significant customer outcry and negative press, General Mills not only abandoned its new arbitration policy, but also issued an apology to its customers, stating:
On behalf of our company and our brands, we would also like to apologize. We’re sorry we even started down this path. And we do hope you’ll accept our apology. We also hope that you’ll continue to download product coupons, talk to us on social media, or look for recipes on our websites.
General Mills is eating a little humble pie at the moment (possibly even prepared by Betty Crocker). However, given the current composition of the Supreme Court and its consistent support for business-friendly arbitration clauses and court waivers, companies will continue to push potential disputes towards arbitration wherever possible in an effort to contain legal costs.
