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Walgreens Shortchanges Customers on Some Coupons

MrConsumer became a victim of a sneaky practice by Walgreens a few weeks ago. He spotted a great deal on Crest 3D White toothpaste, and even promoted it to readers as a “Bargain of the Week” in Consumer World.

Walgreens Crest offer

In this offer, if you bought four tubes of Crest, one of them would be free, plus there was an additional $1 electronic coupon and also an $8 one. Conceivably you could snare all four tubes for only $1.77. It was unclear if one of these coupons was a store coupon and one a manufacturers coupon, so I e-clipped both. I thought if the $1 coupon could not be used in combination with the $8 coupon, obviously I would just use the $8 one.

At the store, the cashier scanned my loyalty card and the four tubes. The total on the screen said $9.77 (before tax) rather than the $1.77 or $2.77 that I expected. This happened because it only took off the $1 coupon. I told her something was wrong because I had also e-clipped an $8 coupon. What she said next floored me.

*MOUSE PRINT:

“The system only takes off the LOWEST value coupon.”

Say what? She said that she could not manually remove the $1 coupon, that I would have to do it in my e-wallet, and then the system would accept the $8 one. I showed the cashier that I didn’t see any apparent way to remove a coupon at the Walgreens website on my cellphone. She said that can only be done in the Walgreens app, which I did not have.

So I left the four tubes at the checkout and headed home to install the Walgreens app and try to remove the $1 coupon. That part of this saga was successful, so I drove back to the store. A different cashier found my four tubes of Crest behind the counter and rang up the order. This time the system took off the $8 coupon properly, which I pointed out to the cashier. She too reiterated that Walgreens’ checkouts only deduct the lowest value coupon applicable to the order.

I couldn’t believe that any company would deliberately create a system to deny customers the use of a legitimate high-value coupon that was properly clipped particularly since the company was getting reimbursed in full for it by the manufacturer.

So we asked Walgreens why they had such an anti-consumer policy. A PR spokesperson for the company replied:

“Thanks for bringing this to our attention. Our current POS [point-of-sale] system is not able to logically determine the best offer at the customer transaction level. Our system applies digital coupons based on the order that the customer activated them along with corresponding expiration dates. We are working with our CPG partners as well as our digital coupon provider to develop remedies outside of our POS. In addition, we are developing a capability for our team members at POS to be able to add and remove coupons at the time of checkout on behalf of the customer. We will follow-up with you as we have more information to share.”

A number of shoppers have posted complaints online including saying that the Walgreens policy noted just above was changed toward the end of 2019 to a lowest value first one.

While we are pleased to have prompted Walgreens to work on a variety of solutions, this never should have happened. A simple highest value first policy would benefit shoppers the most, just like the one used by supermarket chain Hy-Vee:

*MOUSE PRINT:

“If more than one digital coupon is loaded for the same product, the best value will be redeemed at checkout.”

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Buy a Box of Cheerios, Relinquish Consumer Rights?

General Mills Backtracks After Consumer Backlash

 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:



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DTV Coupons: The Consumer Catch-22

For the next year, you will hear repeated public service messages about analog television service being elminated on February 17, 2009. It will be replaced by digital TV service (DTV), and all TV stations will only broadcast in digital format. The problem: what if you only have an old-fashioned TV?   Will it go black a year from now?

Easy answer: it might if you get your signal using rabbit ears or an old-fashioned antenna. The solution: get a digital converter box that will take the new digital signals and convert them back to analog. To help with the expense of buying these boxes, Uncle Sam has set up a coupon program to offer each household up to two $40 coupons toward the purchase of digital TV converter boxes.

*MOUSE PRINT:  Some key facts are buried in the fine print or not well disclosed, including:

1. You cannot combine the coupons toward the purchase of a single box (each will cost between $50 and $70 approximately).

2. The coupons expire 90 days from their mailing to you, and expired coupons will not be replaced.

3. There are only 22.5 million coupons unless Congress authorizes 11.25 million more.

4. While some boxes have already been approved, more are expected.

5. Many if not most retailers do not have the boxes in stock yet.

Translation:  The consumer has a dilemna. The coupons are available now, but the boxes are not. If you order your coupons now, the 90 day clock will begin to run on them when mailed, but you will likely have fewer choices of boxes and brands. If you wait for a better choice of boxes, all the coupons might be gone. And, initially, boxes are not likely to be on sale. Later in the year competition will likely be more stiff, and prices may drop low enough for the coupon to cover nearly the full cost.

Ideally, the coupons should have had no expiration, so the sharp consumer could order them now, but have time to choose more wisely from a fuller selection of converter boxes when they become available.

The trick is to get a coupon as late in the program as possible without the supply having already been exhausted. No easy task.

For more information on the details of the coupon program, including an application form, visit DTV2009.gov .