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Telling people that a consumer claim is false can make them misremember it as true.
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When it comes to consumer claims, mandatory arbitration is the new normal.
"If courts are willing to do that, then I think consumer claims in general are in a lot of trouble," he said.
By prohibiting class-wide arbitration, General Mills' new terms would have all but guaranteed that few consumer claims could get off the ground.
The consumer claims relate to the penalty charges imposed by banks and building societies when customers go over an authorised overdraft limit.
"We're working towards one tribunal that deals with consumer claims in a cost-effective and speedy way, to get these matters resolved," he said.
However, Winterkorn has been at the helm while the global corporation faces criminal investigation and huge consumer claims, as well as having almost 30% wiped off its market value as shares slid.
The New York State Legislature has scheduled a public hearing on insurance issues after the Sept. 11 terror attack, including how quickly consumer claims are processed and the financial health of the industry.
Jean Sternlight, a professor at the University of Nevada-Las Vegas law school, writes in an article to be published in The Southwestern Law Review that mandatory binding arbitration clauses, whether in banking or other consumer contracts, stymie the filing of consumer claims over all.
An analysis of consumer claims submitted to auto manufacturers in recent years shows that speed-control issues — like those that have led to the recall of millions of Toyota vehicles — account for a small percentage of the possible problems brought to the attention of carmakers.
Manufacturers are also a good source for records of consumer claims and court actions, information that the NHTSA gets only when it launches an investigation, if then.
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CEO of Professional Science Editing for Scientists @ prosciediting.com