Why You Shouldn't Like Cheerios on Facebook

What's This?

This June 16, 2011 file photo shows boxes of Cheerios in a store in Akron, N.Y

Image: David Duprey/Associated Press

By Todd Wasserman2014-04-17 20:57:06 UTC

Cheerios has about 1 million fans on Facebook. Here's why you shouldn't be one of them.

On Tuesday, Cheerios parent company General Mills updated the privacy policy on its website. The new language alerts consumers that they waive their right to sue the company if they download coupons or like any General Mills brands on Facebook. As The New York Times notes, those who become Facebook fans of General Mills products will then be required to use informal negotiation via email or go through arbitration — rather than the courts — to seek relief if they have a dispute with the company.

See also: Yes, Emoji Death Threats Are Admissible in Court

A General Mills rep offered the following statement from the company:

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 in a clear and visible way.

Law experts contacted by Mashable say they believe General Mills is the first food company to require consumers to enter into such an agreement.

Ann Bartow, a law professor at Pace Law School, says if you, for instance, accidentally ingest a piece of glass that found its way into your box of Cheerios, you are better off trying to sue General Mills if you live in New York vs. Maryland. That's because in New York state, the arbitration clause would be unenforceable. under Maryland law getting a judge to say that the arbitration clause was not enforceable would be difficult, Bartow says.

Bartow adds that it's unclear if a New York-based consumer would need to go to General Mills' home state of Minnesota to argue that the case shouldn't be settled in arbitration, though. "If you did find glass in the product, now you're not just dealing with General Mills, but you have to sue just to get into court," she says. Either adds court costs that the average consumer might find prohibitively expensive.

One option that's off the table is a class-action lawsuit. The 2011 Supreme Court decision AT&T Mobility v. Concepcion let companies bar consumers from banding together to sue if the companies include a standard form contract that requires that disputes be settled via one-on-one arbitration.

Companies have been crafty about getting consumers to enter into such contacts. Credit card companies and mobile phone companies embed them in their standard contract language. In 2008 fast food chain Whataburger put signs in its locations telling consumers that by coming into the restaurants they automatically agree to use arbitration to settle disputes with the company.

Brian Fitzpatrick, a law professor at Vanderbilt, says requiring consumers to agree to class-action waivers in arbitration clauses will effectively shield corporations from offering any meaningful damages, even when they're in the wrong. "This is a problem because a lot of these consumer fraud claims have only small damages associated with them," Fitzpatrick says. "if you can’t bring these claims as class actions, you won’t be able to bring them at all. (What lawyer will take a case worth $20?) This means companies will be able to escape all liability for many consumer frauds."

When asked what a consumer should do, Richard Daynard, Northeastern Distinguished Professor of Law, responded that they should definitely not "like" any General Mills brands on Facebook and perhaps take it further than that. "A smart consumer would actually not buy General Mills products," he says.

Based on Cheerios' Facebook Page, many consumers had already decided to do just that.

Topics: Business, general mills, law