Consumer Rights Wiki

Vital Proteins sells products with terms and conditions inside the container

(Redirected from Hiding Forced Arbitration Inside Packaging: a new low.)

This article focuses on hidden forced arbitration (a practice wherein the terms of service are shown only after opening the package), dubbed "shrinkwrap arbitration"—specifically by Vital Proteins, a collagen supplement provider and Costco, a wholesale store. The company has a history of anti-consumer practices.

Vital Proteins sells supplements,[1] and they have product lines that come in containers with a lid on them. These type of containers have a plastic ring under the lid, which break away from the main lid after opening them for the first time. After doing so, which you can only do if you have bought the product, the consumer is presented with a carton inside the container which lists the terms and conditions with forced arbitration for the use of their products. Arbitration can be used to avoid the court system for things such as liability for wrongful death or sexual assault.[2]

Background edit

In 2018, Vital Proteins filed for settlement in the Superior Court of the State of California over lead and cadmium in their products.[3] No demonstrably safe threshold for lead exposure has been identified.[4]

In 2021, there were already reports of forced arbitration by the terms and conditions, which are only listed inside the container.[5]

In 2024, the issue received attention again when the practice was still not changed, and still required first buying and opening the product itself to see these terms since they were not present on the packaging.[6][7][8]

Putting terms and conditions inside packaging edit

This section covers what this practice means for consumers. Legislation of interest is the Uniform Commercial Code, which describes the sale rights most US consumers fall under. It constitutes that the consumer has the right to inspect the goods, and know the terms before accepting it. In this case, you have to buy it first before you know all terms and conditions, so the good cannot be considered accepted until opened.

 
Screenshot of the Mastodon post recording the incident.

As reported by [email protected],[6] with photograph, a collagen container purchased from Costco had an arbitration agreement on the inside, visible only after the user opened the product, and written in an unconventional way, with the text being written in a circle rather than a simple paragraph. The text is as follows:[6]

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

Consumer response edit

Consumers are infuriated because they feel deceived, as they buy the product without knowing the full terms of the sale.[5][7] Only after the purchase and opening the product do they see that the seller wants them to agree to these terms with forced arbitration. This practice is not transparent to consumers, and makes for unnecessary returns to the seller if consumers decide they cannot agree to the terms, at the expense of the consumer.

A preceding report on Vital Proteins Collagen was documented on Reddit in January 2023.[9]

References edit

  1. ↑ "Vital Proteins". Retrieved 10 Apr 2025.{{cite web}}: CS1 maint: url-status (link)
  2. ↑ O'Brien, Sarah Ashley; Black, Nelli; Devine, Curt; Griffin, Drew (18 Sep 2018). "CNN investigation: 103 Uber drivers accused of sexual assault or abuse". CNN. Archived from the original on 28 Sep 2018. Retrieved 11 Jul 2025.
  3. ↑ "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" (PDF). ca.gov. 2018. Archived (PDF) from the original on 4 Jun 2018. Retrieved 11 Jul 2025.
  4. ↑ Vorvolakos, Th.; Arseniou, S.; Samakouri, M. "There is no safe threshold for lead exposure: Α literature review" (PDF). Psychiatriki (27): 204–214. doi:10.22365/jpsych.2016.273.204. PMID 27837574. Archived (PDF) from the original on 12 Jul 2025. Retrieved 11 Jul 2025.
  5. ↑ 5.0 5.1 Dedaciai (16 Apr 2021). "Forced arbitration if you decide to use this container of protein powder...(returned!)". Reddit. Archived from the original on 12 Jul 2025. Retrieved 11 Jul 2025.
  6. ↑ 6.0 6.1 6.2 Wraithe (31 Aug 2024). "Just found this on the top of a container of collagen that we just bought from Costco". Mastodon. Archived from the original on 2 Sep 2024. Retrieved 11 Jul 2025.
  7. ↑ 7.0 7.1 jsborger (31 Aug 2024). "My collagen powder container has a Terms and Conditions agreement when you open the lid". Reddit. Archived from the original on 1 Sep 2024. Retrieved 11 Jul 2025.
  8. ↑ Rossmann, Louis (17 Sep 2024). "Hiding Forced Arbitration Inside Packaging: a new low". YouTube. Retrieved 11 Jul 2025.{{cite web}}: CS1 maint: url-status (link)
  9. ↑ default_username20 (8 Jan 2023). "Vital Proteins Return for binding Arbitration Agreement label?". Reddit. Archived from the original on 12 Jul 2025. Retrieved 11 Jul 2025.{{cite web}}: CS1 maint: numeric names: authors list (link)
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