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Consumer Advocates Say Read Fine Print Of On-Line Contracts

  •  Max Pringle 
Monday, April 21, 2014 | Sacramento, CA
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General Mills is parent company to household names like Cheerios and Bisquik. It recently added binding arbitration language to its on-line consumer agreements.

Scott Michelman with Public Citizen says that means a consumer could lose the right to sue in court.

 “You’re average consumer reading a contract on-line doesn’t click through all the fine print to find all the sorts of hidden traps,” says Michelman.

General Mills said in a statement that it is not removing anyone’s right to dispute a transaction, only determining the forum where the dispute would be heard.

Public Citizen is representing a Utah couple who were sued by a novelty gift company for complaining on-line about shoddy service. The couple were unaware they’d signed a “non-disparagement” clause hidden in the fine print of an agreement they signed years earlier.

A bill that will be heard Tuesday in the California legislature would require companies to take reasonable steps to insure customers are aware of what they’re signing, or face penalties.

 


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Max Pringle

State Government Reporter

Max covers the state capital, bringing more than a decade of experience in print and public radio, including reporting for KPFA, KQED and KALW. He traces his news roots to working on his his high school newspaper.   Read Full Bio 

 @Maxbp Email Max Pringle

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