AutoWorld News reported that the new privacy policy of cereal maker General Mills has given the company protection from customers who have joined its contests and online communities and downloaded coupons. Citing a New York Times article, the new policy is in the form of a gray banner on all of its website's pages. The company reportedly declined to have a spokesperson talk to the New York newspaper regarding the amended policy.
In a statement quoted by the Times, General Mills explained the need for this provision and said, "While it rarely happens, arbitration is an efficient way to resolve disputes--and many companies take a similar approach. We even cover the cost of arbitration in most cases. So this is just a policy update, and we've tried to communicate it in a clear and visible way."
According to the new policy, customers in essence waive their right to seek legal action against the cereal maker upon joining the company's website. It is not clear whether the amended policy extends to existing members or customers who previously joined General Mills' contests. However, General Mills emphasized that the customer's interaction with the company is considered voluntary, and that the use of coupons also qualifies as company interaction.
Legal experts expressed their incredulity with the bold move General Mills has done. AutoWorld News said the experts taut such move as forced arbitration. Forced arbitration is explained as the incident wherein customers who have received any form of benefit from an entity are required to go through arbitration or negotiation with the company if there is a dispute.
Arbitration expert and director of federal programs Julia Duncan at the American Association for Justice told the Times about the new policy and said, "Although this is the first case I've seen of a food company moving in this direction, others will follow--why wouldn't you? It's essentially trying to protect the company from all accountability, even when it lies, or say, an employee deliberately adds broken glass to a product."
