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AMEX Allows You to Opt-Out of Mandatory Arbitration

In a rather unusual move, American Express is letting cardholders opt-out of the mandatory arbitration provision in their credit card agreements.

*MOUSE PRINT:

AMEX

The rejection notice (a sample is here) must be mailed by February 15, 2013 or 45 days after you make your first purchase with the card, whichever is later.

They are also instituting a mediation program to resolve disputes. But, the new agreement requires if you are not able to resolve the problem with customer service, that you file a notice with them before resorting to mediation, arbitration or court.

Why did AMEX decide to let you opt-out of required arbitration?

One consumer lawyer put it this way: “Just another attempt to make the arbitration provision bulletproof. What could be fairer than giving consumers the choice to opt-out?”

Everyone knows that opt-out rates are very low, and since there is a relatively short deadline, few people are likely to do it. The result: virtually all cardholders will be left without the legal remedy of going to court over a major problem (or be part of a class action for smaller but widespread issues).

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Can’t Companies Learn from Their Mistakes?

Just about a year ago, we wrote about Save-a-Lot, a limited assortment grocery chain, that was promoting their Facebook page. They promised to give shoppers a $5 coupon to use at their supermarket if you “liked” them. See our story, “Save-a-Lot’s Deceptive Facebook Promotion.”

Only after you “liked” them, did they disclose that the coupon was really buy $25 worth of groceries, and get $5 off.

So, we pointed out this omission to them, and after a little pestering, they quickly updated the promotion to clearly disclose that this was a $5 off a $25 purchase coupon.

Fast forward to November 2012. On the homepage of Save-a-Lot, they were giving thanks to their shoppers saying “To give thanks and help you enjoy this season with your family, we are giving you a $5 coupon.”

Save-a-Lot homepage

When you click on that ad, you are taken to the company’s Facebook page, where the promotion is shown again:

Save a Lot Facebook

And when you “like” their Facebook page, you discover this:

*MOUSE PRINT:

Save a Lot

Yep, same old thing… you have to buy $25 worth of groceries in order to save the $5.

How could a company that was called on the carpet just a year ago for the very same deceptive practice not learn how to tell their customers the truth upfront about their $5 off coupons? We immediately notified the company of the recurring problem, but heard nothing. About a week later, we contacted them again, and were informed that they changed their ad right after receiving the first email:

Save a Lot

When we replied to the company with the hope that they do it correctly and legally next year, their PR person replied:

“Legally the information is posted on the offer once the click through is made and the offer itself is not misleading. However, we understand your concern for it on the banner, as our desire is never to intentionally confuse our customers.” — Save-a-Lot Spokesperson

It is amazing to me that companies believe because they disclose a key fact or limitation SOMEWHERE that that is sufficient and legal notice to the consumer.

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Would You Let a Company Impersonate You on Facebook?

Lowe’s just sent out an email to shoppers on its mailing list inviting them to participate in its “Black Friday Showdown.” Doing so will give you an opportunity to preview 16 Black Friday specials and win them if you “like” Lowe’s on Facebook.

Lowe's Black Friday

Sure, why not, thought MrConsumer.

Upon reaching their Facebook page, you discover that not only does Lowe’s want a “like” in exchange for your chance at winning all those prizes, they also want to install a Facebook app that will let them post messages as if they were you on Facebook.

*MOUSE PRINT:

Lowe's Facebook app

Excuse me? You want me to allow you to probably send advertisements about Lowe’s to my friends but make it seem like I wrote those messages? I don’t think so. You can keep your 16 prizes.

On closer scrutiny of their Facebook page, however, there is a way to have your cake and eat it too.

*MOUSE PRINT:

Lowe's posting exclusion

Many people may have overlooked it, as did MrConsumer, but there is an option to control to whom the Lowe’s app would send their advertisements. As shown above, it defaults to sending those incognito ads to all your friends. However, you can change the setting so that Lowe’s only sends them to just you.

Mouse Print* asked Lowe’s to comment on their use of this questionable means of advertising, and here their response:

Lowe’s is not posting on behalf of the user without the user taking action and opting to share information. If a customer chooses to not share, then the app will not post any information on behalf of the customer. It is completely user initiated.

Lowe’s Facebook app and its ability to communicate is done in the same format as many other apps like it and is compliant within Facebook’s terms and services. The app notifies a user before they install it that it will post on content. However, it is important to note that the customer at that point has the ability to adjust who within their network will see the post. For example, it can be adjusted by the consumer so that no one can see any posts from this app should they choose. Again – this is standard protocol used by many brands.

To be clear, the only time the app actually does post is when the user chooses to ‘share’ their winning product on their Facebook wall. It will not post automatically. — Public Relations Manager, Lowe’s

This type of advertising just seems like it is overreaching.

In fact, similar invasions are becoming commonplace not just on Facebook, but when you download free apps to your smartphone. See Exposing Your Personal Informatio​n – There’s An App for That .

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