General Mills Backs Down
Last week we reported on General Mills' efforts to bully consumers into forced binding arbitration and we predicted the ploy would backfire. Well, it did backfire. Consumer outrage and negative publicity erupted. Public Justice reports that General Mills has reversed its policy. You can read the full story here.
Gradually, the problem of arbitration in consumer contracts is beginning to resonate with people across the country. The New York Times was one of several national news organizations which reported on General Mills' behavior. Since then, another great article in the New York Times explains how forced arbitration enables financial institutions to get away with lending abuses. You can read NYT reporter Emily Bazelon's excellent article here.
Financial institutions should take a look at General Mills' experience, and realize that borrowers as well as consumers of goods and services are getting fed up with being denied their day in court to challenge defective products and deceptive practices.