Please note that all submissions to the site are subject to the wiki's licence, CC 4.0 BY-SA, as found here

Forced arbitration hidden inside packaging

From Consumer Action Taskforce
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to navigation Jump to search

Background: arbitration and lead-contaminated products

Screenshot of Mastodon post recording the incident.

This article focus on business practices of manufacturers and retailers and an instance of "shrinkwrap arbitration"—specifically Vital Proteins, a collagen supplement provider and Costco, a wholesale store. In 2018, Vital Proteins filed for settlement in the Superior Court of the State of California over lead and cadmium in their products.[1] No demonstrably safe threshold for lead exposure has been identified.[2]

Arbitration is an alternative to court proceedings. It is alternative proceeding, conducted off of the public record, and away from the eyes of investors, and other potential plaintiffs. Arbitration may include nondisclosure agreements. It avoids costly court procedures, but it strips citizens of their due process rights. Forced arbitration suffers numerous critiques. The business is a repeat customer of the arbitrator, so the business has an undue appearance of influence. Arbitration can be used to avoid court for cases which may otherwise be things such as liability for wrongful death or sexual assault.[3]

Incident of note

As reported by [email protected],[4] with photograph, a collagen container purchased from Costco had a arbitration agreement on the inside, visible only after the user opened the product.

READ THIS: By opening and using this product, you agree to be bound by our Terms and Conditions, fully set forth at vitalproteins.com/tc, which include a mandatory arbitration agreement. If you do not agree to be bound, please return this product immediately.

A preceding report on Vital Proteins Collagen documented on Reddit in January 2023[5].

References

  1. Superior Court of the State of California County of Alameda, Stipulated Consent Judgement, Environmental Research Center Inc. vs. Vital Proteins, LLC and DOES 1-100. Case RG18905420. https://oag.ca.gov/system/files/prop65/settlements/2017-02480S6659.pdf
  2. Vorvolakos T, Arseniou S, Samakouri M. There is no safe threshold for lead exposure: Α literature review. Psychiatriki. 2016 Jul-Sep;27(3):204-214. doi: 10.22365/jpsych.2016.273.204. PMID: 27837574.
  3. Sara Ashley O'Brien, Nelli Black, Curt Devine and Drew Griffin, CNN, CNN investigation: 103 Uber drivers accused of sexual assault or abuse, September 18, 2018 https://edition.cnn.com/2018/09/28/tech/uber-driver-sexual-assault/index.html
  4. Wraithe, Mastodon Post, August 31, 2024 https://mastodon.social/@Wraithe/113058482791600044
  5. default_username20 "Vital Proteins Return for binding Arbitration Agreement label?", Reddit Post, January 8, 2023. https://www.reddit.com/r/Costco/comments/106iin4/vital_proteins_return_for_binding_arbitration/?rdt=42766

Associated video: https://www.youtube.com/watch?v=-5oxUH86XSA