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General Mills Retracts "No Right to Sue" EULA Clause

Just a few days after General Mills changed its policies to declare that people who so much as "liked" their page on Facebook thereby waived their right to sue the company in favor of arbitration, the company has reversed itself: "The announcement resulted in huge backlash on social media, as well as from consumer groups. Legal experts expressed doubts it could ever be enforced. Hamline Law Professor David Schultz appeared on WCCO Sunday Morning. “When I first saw this earlier this week I said this is questionable at best from a legal point of view,” he said. “From a marketing point of view, it’s a dumb idea, too, but legally it didn’t rest on very sound grounds so it’s not a surprise that they are reversing it. The lawyers at General Mills should have known better.”

17 of 88 comments (clear)

  1. Lawyers by Dan+East · · Score: 5, Insightful

    This is the kind of thing that happens when lawyers aren't kept on a short enough leash. They can't stop regurgitating into the legal documents they produce and you end up with this kind of complete and total stupidity. If the company really wants to save face they should fire the entire lot of them. Unless the executives are that afraid of the litigious cretins.

    --
    Better known as 318230.
    1. Re:Lawyers by Anonymous Coward · · Score: 3, Insightful

      How do you know this was initiated by the lawyers?

      Do you really think their lawyers can change the TOS without first getting approval from the management?

    2. Re:Lawyers by jasper160 · · Score: 3

      I would agree with you there. Our MBA's and project managers spend their time mental masturbating coming up with nothing more but more work and requirements for more PM's and BA's. I have started asking them what value or ROI have they brought to the company and they get a panicked look.

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      No good deed goes unpunished.
  2. Vigilance by rogoshen1 · · Score: 4, Insightful

    Consumers need to be vigilant about this kind of crap. Sure general mills pulled back this time, but all that means is that next time they'll be more subtle, going for something that's less of a reach, and this kind of shit will slowly start encroaching on us. (See also SOPA type nonsense.)

  3. the power of the internet .... by thephydes · · Score: 3

    We'll as an outsider - non USA - this seems to me to be a demonstration of how powerful the internet is ie, forums like slashdot, social media, email, etc. Who in their right mind would think that they could sneak in a clause that takes away already recognised rights, without VERY public and international comment. Geez, who ever hired those lawyers needs to be fired on the spot, and the company needs to hire another firm of bottom feeders.

    1. Re:the power of the internet .... by darkonc · · Score: 3, Insightful

      Who in their right mind would think that they could sneak in a clause that takes away already recognised rights, without VERY public and international comment.

      10 or 15 years ago, that wouldn't have been something to take into account. A couple of people would have groused about it, and their friends might have paid attention, but the macro effect on the company would have been trivial.

      Consider that Microsoft, for example, has gotten away with language like that in a piece of software that 90%+ of desktop computers are sold with, and that it's actually difficult to buy a computer without. Meaningful protests??? Roughly zero.

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      Sometimes boldness is in fashion. Sometimes only the brave will be bold.
  4. Joke about lawyers by Futurepower(R) · · Score: 5, Interesting

    "... when lawyers aren't kept on a short enough leash"

    Here is a typical joke about lawyers in the United States: There was a terrible tragedy. A van carrying 5 lawyers went over a cliff. What was the tragedy? There was room for 1 more lawyer.

    The common underlying feeling is that the legal profession in the U.S. is often out of control.

    This is interesting: What country in the world has most lawyers per capita? Answer: The United States. There is one lawyer for every 265 Americans.

    1. Re:Joke about lawyers by NoKaOi · · Score: 4, Insightful

      can't imagine a real lawyer being so stupid, then again I hear in usa anyone can pass for one.

      Just because you can't imagine a reason other than stupidity doesn't mean there is one. I can thing of 3 possibilities (in order or probability) and I'm sure there's more:
      1. They knew it would never hold up in court, which they are fine with. If they ever get sued, they can still use and even if it gets shot down, it still will cost the plaintiff a ton of money to fight it. General Mills most likely has much, much deeper pockets than any prospective plaintiff. It can then be used to either run the plaintiff out of money, or it'll help them in negotiation because the plaintiff's attorneys may consider it in how much it'll cost their client.
      2. The lawyers bill hourly. The longer the EULA and the more time they spend on it, the more they get paid. They know it won't hold up but they don't care because General Mills gives them more money. If it does become a point to fight in court, even if they know they will lose that particular point, they're also billing hourly for that.
      3. They really are stupid.

    2. Re:Joke about lawyers by Lumpy · · Score: 4, Interesting

      Or the most probable. 4 - the lawyer is a incredibly evil asshole.

      Honestly any, ANY lawyer that pulls that arbitration shit needs to be beaten badly with a sack of doorknobs. Only the most evil scumbags on the planet will try to circumvent legal rights of their own customers.

      --
      Do not look at laser with remaining good eye.
    3. Re:Joke about lawyers by Anonymous+Brave+Guy · · Score: 4, Funny

      But corporations are people my friend.

      Well, everyone has their own perspective. I even heard someone say the same of lawyers, once...

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      If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
    4. Re:Joke about lawyers by geminidomino · · Score: 5, Funny

      No kidding. These guys make breakfast cereal for chrissakes. If they want to openly express contempt for their customers like that, without any backlash, they need to get into game development.

  5. Signs by symes · · Score: 3, Insightful

    This reminds me of those signs you sometimes see in car parks "the owners will not be held responsible for any damage to your vehicle." I am reliably informed that this is not true in all cases. If, for example, the owners fail to maintain equipment or the building adequately and you can attribute cause of damage to their dereliction of duty they can be held responsible. Putting up signs does not usurp consumer rights.

  6. Re:"Like" General Mills? by KozmoStevnNaut · · Score: 5, Insightful

    Often, you have to 'like' their pages on Facebook in order to participate in contests and the like. People love the possibility of getting free stuff, so they happily click 'like' to enter the contest, and then forget about it moments later.

    Somebody obviously saw this as a sneaky way of possibly getting their customers to actively sign away their right to sue.

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    Eat the rich.
  7. And again: by ledow · · Score: 4, Informative

    Just because someone puts something in a contract, and even if you "agree" to it by signing it (or even ACTUALLY agree with that line of the contract, which is something else entirely), it does NOT mean that it's automatically legally enforceable.

    Some rights cannot be signed away. Ever. Even if you want to. If you've ever read "This does not affect your statutory rights", it's an acknowledgement of this (and, in fact, they don't even need to say that - because not saying it wouldn't affect those rights either!).

    And "Can not sue" clauses generally don't exist in a vast majority of jurisdictions around the world. Because firstly, they are stupid. Secondly, they are unfair. And thirdly, they are not (generally) legally enforceable anyway.

    If you ever thought otherwise, just replace whatever line with "I agree to be killed". Just because you sign it, just because you want it to happen, does NOT mean that the other party in the contract is able to do it to you.

    It doesn't mean that nothing is enforceable, but stupid shit like this has nothing to do with the company "backing down"... they just asked a lawyer and realised that they couldn't actually enforce that clause anyway, and they risk large swathes of the same contract being revoked because of such unfair clauses that might come under similar scrutiny.

    Don't be stupid and sign away your rights, but equally don't assume that you CAN sign away such rights either. Especially where "like" on Facebook means you can't sue... sorry, ABSOLUTE BOLLOCKS, and would be thrown out of any court.

  8. Caught red handed by Anarchy24 · · Score: 3, Interesting

    "The lawyers at General Mills should have known better.”"

    What they mean is: the lawyers should have written it more obscurely so they didnt get caught

  9. "Mis-characterized"? Seriously? by sirwired · · Score: 3, Interesting

    I find it amusing (and useless) that they are now complaining that the language was "mis-characterized" The language was quite clear, as far as legalese goes.

    If anything, the media has been too easy on them, calling the language "routine" in other industries and stating that the only difference is General Mills is first packaged foods company to try mandatory arbitration clauses. This language isn't routine at all! I don't know any other company that forces you to accept a mandatory arbitration clause where interacting with the website magically prevents you from suing them over something about a product you bought in a store. If the clause just applied to the website itself, it would be routine; but trying to apply it to all other interactions with the company? I don't think so.

    The initial change was stupid and tone-deaf, but they are now "doubling-down" and trying to pretend it doesn't mean exactly what it said. The sad part is, even if nobody believes this corporate double-speak, instead of agitating to have the ridiculous arbitration laws changed, people will just shrug their shoulders and ignore the problem some more.

  10. Corporate death penalty? by stoploss · · Score: 4, Interesting

    Then treat them like one.

    Oh, X corporation is responsible for the deaths of X people? Looks like a serial killer to me, execute the corporation.

    Okay, I have often heard this call for a corporate death penalty. However, how do you envision this would work? Despite the twisted perspective of the courts, corporations are nothing more than the real, human people who own them and work for them.

    If punishment is due, then who should it be incident upon? The stockholders, like your local firefighters' pension fund who owns many shares of this condemned corporation? No? Well, shall it be broken up and sold off instead? Fine, the current owners will form a new shell corporation to asset strip the condemned corporation by buying its assets cheaply and leaving the debts behind in the "executed" corporation. Congratulations, the wealthy owners got richer as a consequence of the "punishment". Shall the corporation be taken over by the government and the owners forfeit the shares? Now the government has a moral hazard... all those profitable corporations look mighty guilty of "crimes" if we are debating having to raise unpopular taxes.

    I say hold the executives responsible for what their underlings do, and don't allow plausible deniability to be claimed by execs who should know what is happening. We can't legislate morality into sociopaths, but we *can* make them fear incarceration for wrongdoing. *That* would go a long way toward increasing ethical action by corporations. Of course, it will never happen, but at least the incentives are aligned to punish those who are responsible with this proposal, whereas the corporate death penalty invariably would punish the hapless "little guy" shareholders (i.e. the wealthy would circumvent the effects).