Could “liking” a company on Facebook mean you’re agreeing to its binding arbitration clause? According to Thomas DeMicco of Wilson Elser Moskowitz Edelman & Dicker, it’s possible. He cites a recent article in The New York Times by Stephanie Strom that draws attention to the fact General Mills added language to its website alerting consumers they are giving up the right to sue if they download coupons and instead are subject to mandatory arbitration. He said the article characterized the move has having “nefarious intentions,” which he thinks is unfair.
“Arbitration is an efficient and cost-effective way to resolve disputes, and the preferred method for resolving disputes in the commercial arena,” DeMicco said. He noted that General Mills isn’t the only company making such changes to its company website. Though critics contend consumers are denied rights when they can’t litigate, DeMicco said it’s not arbitration that’s unfavorable to consumers, it’s unfavorable to class action plaintiffs attorneys, who are the true victors of giant lawsuits.
