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April 21, 2014

Buy a Box of Cheerios, Relinquish Consumer Rights?

General Mills Backtracks After Consumer Backlash

Filed under: Food/Groceries,Internet,Retail — Edgar (aka MrConsumer) @ 6:21 am

 The New York Times last week published an eye-opening story about General Mills, the big cereal maker. It noted that after being stung in court by a consumer class action, the company updated its legal terms to say that any beef you have with the company can only be pursued through informal negotiations or mandatory arbitration — no lawsuits (other than small claims) allowed.

It announced these changes at GeneralMills.com, in fine print at the top the page:

*Mouse Print:

General Mills

The key part of the new legal terms provides:

*Mouse Print:

In exchange for the benefits, discounts, content, features, services, or other offerings that you receive or have access to by using our websites, joining our sites as a member, joining our online community, subscribing to our email newsletters, downloading or printing a digital coupon, entering a sweepstakes or contest, redeeming a promotional offer, or otherwise participating in any other General Mills offering, you are agreeing to these terms.

ANY DISPUTE OR CLAIM MADE BY YOU AGAINST GENERAL MILLS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR YOUR PURCHASE OR USE OF ANY GENERAL MILLS SERVICE OR PRODUCT (INCLUDING GENERAL MILLS PRODUCTS PURCHASED AT ONLINE OR PHYSICAL STORES FOR PERSONAL OR HOUSEHOLD USE) REGARDLESS OF WHETHER SUCH DISPUTE OR CLAIM IS BASED IN CONTRACT, TORT, STATUTE, FRAUD, MISREPRESENTATION, OR ANY OTHER LEGAL THEORY (TOGETHER, A “DISPUTE”) WILL BE RESOLVED BY INFORMAL NEGOTIATIONS OR THROUGH BINDING ARBITRATION, AS DESCRIBED BELOW.

So, merely printing a coupon for a GM product, “liking” them on Facebook, or perhaps just buying a single package of Cheerios, Yoplait yogurt, Gold Medal flour, or a can of Green Giant peas will automatically mean that you give up your right to individually sue the company, and cannot participate as a member of a class action lawsuit.

The company is letting people opt-out of these provisions, but once you use any of the companies’ websites or print another coupon, for example, you are on the hook again.

While one could interpret the language of their agreement to only be triggered when a consumer uses their websites, downloads a coupon, or otherwise interacts with the company, the broad nature of the restriction — possibly being triggered by a purchasing a product — will surely come under legal scrutiny. How can you be held to an agreement you never saw or actually agreed to?

When asked to comment on the company’s new anti-consumer policy, all the Jolly Green Giant would say is:

However, the company had a change of heart over this past weekend, cancelled the new terms including all references to arbitration, and posted this statement on their blog:

“As has been widely reported, General Mills recently posted a revised set of Legal Terms on our websites. Those terms – and our intentions – were widely misread, causing concern among consumers.

So we’ve listened – and we’re changing them back to what they were before.

We rarely have disputes with consumers – and arbitration would have simply streamlined how complaints are handled. Many companies do the same, and we felt it would be helpful.

But consumers didn’t like it.

So we’ve reverted back to our prior terms. There’s no mention of arbitration, and the arbitration provisions we had posted were never enforced. Nor will they be. We stipulate for all purposes that our recent Legal Terms have been terminated, that the arbitration provisions are void, and that they are not, and never have been, of any legal effect.

That last bit is from our lawyers.

We’ll just add that we never imagined this reaction. Similar terms are common in all sorts of consumer contracts, and arbitration clauses don’t cause anyone to waive a valid legal claim. They only specify a cost-effective means of resolving such matters. At no time was anyone ever precluded from suing us by purchasing one of our products at a store or liking one of our Facebook pages. That was either a mischaracterization – or just very misunderstood.

Not that any of that matters now.

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.” –Kirstie Foster, Director of External Communications

Nothing like bad press to convince a company to do the right thing.

Lost in the controversy about mandatory arbitration is the other thing that General Mills just did — they changed their privacy policy. The new little ditties they added include their collection of information about you from social networks and other third parties; how they combine that data with their own information to target market to you; and that if your browser sends a “do not track” command to them on your behalf, they will ignore it.

When asked to comment on their privacy policy changes, all the Pillsbury Doughboy would say is:

• • •

April 14, 2014

They Advertise “Free” Shipping But Default to “Pay” Shipping

Filed under: Electronics,Internet,Retail — Edgar (aka MrConsumer) @ 6:21 am

 A senior citizen friend was in need of a new TV, so MrConsumer found a wonderful deal on a 32″ Sony for only $199.99 with no sales tax and free shipping at Newegg.

Newegg

Yes, it is reconditioned, but MrConsumer owns two reconditioned Sony’s and they’re fine. Using my friend’s AMEX (since it doubles the 90-day warranty that Sony gives on refurbished products while most Visa/MCs exclude such purchases from coverage) I ordered the item for him. To my shock and horror, when I scrutinized the receipt, I noticed that Newegg charged $4.99 for three-day delivery. I swear that the “free delivery” box was checked off or appeared to be checked off on the ordering screen. But, a closer look revealed not.

*MOUSE PRINT:

Newegg

Despite being advertised as coming with free shipping, the Newegg system apparently defaults to pre-selecting a pay shipping option even when a free option is available. It may have been the blue arrow pointing to the free shipping option that erroneously gave me the impression I was all set.

Immediately upon noticing my error, I called Newegg. It was closed on Sundays. Drats. I tried “chat” and discovered it was down. Drats. I emailed them and heard nothing back on Sunday. Drats. I tried chat again, and this time got through and after a little persistence, the agent offered me a $4.99 credit toward a future order. She would not process a credit card refund, however.

At 5:30 a.m. Pacific time the next day, MrConsumer called Newegg, and spoke to a wonderful agent who agreed to make a one-time exception, and credit my friend’s credit card for the shipping. Great outcome, Newegg.

It should be pointed out however, (1) the item had not yet been shipped when these multiple requests to change the shipping method were made, and (2) that Newegg would better serve customers, particularly on items advertised as coming with free shipping, to have that option preselected by default.

Newegg is not alone in this gambit. Amazon also defaults to a pay shipping option even when the order qualifies for free shipping.

• • •

April 7, 2014

MetroPCS: “All 4G Phones Only $29″ ?

Filed under: Electronics,Telephone — Edgar (aka MrConsumer) @ 6:21 am

 MetroPCS has been advertising a “$29 for All Sale” where “All 4G phones on our nationwide 4G LTE network are now just $29.”

MetroPCS

MrConsumer thought what a great way to get a high-end 4G-LTE cellphone like the Samsung Galaxy S 4 for only $29 since MetroPCS does not require contracts. And, it might be able to be used on T-Mobile’s network.

Upon clicking the “Shop 4G Phones” button, one gets a surprise.

*MOUSE PRINT:

MetroPCS

Only three phones are listed, and not one of them is a high-end 4G-LTE phone. But all 4G phones are supposed to be $29, no?

Well, apparently, MetroPCS makes a distinction between a “4G” phone and a “4G-LTE” phone. (LTE refers to the newest fastest, network protocol for data.) But the advertisement specifically says that all their $29 4G phones run on their 4G-LTE network. How can that possibly be true, because only an LTE phone can run on an LTE network. A conventional 4G phone, as all the ones above are, cannot run on an LTE network.

MetroPCS has exactly one phone for $29 that runs on their 4G-LTE network, but it is not shown on the above page. It is that ultra famous, Huawei Vitria.

We asked MetroPCS for an explanation, and the PR firm representing them responded:

“While we believe that our website describing our $29 phone offer was fair and appropriate, it’s always important to us that we are as clear as possible in our marketing and advertising. As such, even though this promotion ends on April 9th, we have made some changes to the way we describe this on our homepage and elsewhere on our website.”

Lo and behold, the advertisement that proclaimed that all the 4G phones that run on their 4G-LTE network are $29 has mysteriously changed, including noting that the $29 price was “after rebate”:

MetroPCS

No longer do they claim that the $29 phones operate on their LTE network. Don’t you just love a company that denies anything is wrong, but then, just coincidentally, changes its offending advertisement.

Until that change was made, only one letter separated a “phone” sale from a “phony” sale.

• • •

March 31, 2014

No Joke, Sears Advertises Customers’ Complaints

Filed under: Humor,Internet,Retail — Edgar (aka MrConsumer) @ 5:39 am

 For inexplicable reasons, until recently, Sears maintained a page on its “Shop Your Way” website that was automatically populated with customers’ reviews and comments. The result of this automation was that unflattering comments about Sears’ products and practices got published and promoted as if they were ads, along with the positive ones.

*MOUSE PRINT: Happy April Fools Day week, but these ads are no joke. These negative ads were recently culled from the Sears page containing all product ads.

 


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• • •

March 24, 2014

Muscling In On Your Wallet

Filed under: Health,Internet,Retail — Edgar (aka MrConsumer) @ 6:15 am

muscles

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