Vital Proteins, the collagen supplement brand, includes a mandatory binding arbitration agreement in its Terms and Conditions, which requires customers to resolve disputes with the company individually through arbitration rather than in court, and waives the right to participate in a class action lawsuit or jury trial. This clause applies broadly to anyone who uses Vital Proteins’ services or purchases its products, and it drew widespread attention in 2024 after a customer discovered a printed insert inside a product package at Costco referencing the agreement — a practice critics dubbed “shrinkwrap arbitration.” This is a general, factual overview and not legal advice; anyone with a specific dispute should consult an attorney.
What the Arbitration Agreement Says
According to Vital Proteins’ published Terms and Conditions, the company and the customer agree that any dispute, claim, or controversy related to the Terms themselves — or to using Vital Proteins’ services — will be resolved through binding arbitration rather than in a court of law. The agreement also grants the arbitrator, rather than a judge, the authority to decide disputes about the interpretation, enforceability, or validity of the arbitration agreement itself. The terms explicitly state that by agreeing to them, a customer forfeits the right to a jury trial, to participate in a class action, or to pursue other types of court proceedings.
How the Arbitration Process Works
For disputes involving claims under $10,000, Vital Proteins’ terms allow the arbitration to be conducted by phone, through written submissions, or in person in the county where the customer lives, or at another mutually agreed location. For claims of $10,000 or more, the hearing process is governed by the rules of the American Arbitration Association (AAA), a nationally recognized organization that administers arbitration proceedings.
The Costco “Shrinkwrap Arbitration” Controversy
In 2024, attention turned to how this agreement was being presented to consumers. A customer reported finding a printed insert referencing the arbitration terms tucked inside the packaging of a Vital Proteins collagen product sold at Costco — meaning the terms weren’t necessarily visible or reviewable until after the product had already been purchased and opened. Consumer advocacy groups criticized this approach, arguing that presenting binding legal terms only after a purchase is completed limits a buyer’s ability to meaningfully review and consent to them before being bound. The controversy also drew renewed attention to Vital Proteins’ broader business history, including a 2018 settlement in a California court over lead and cadmium levels detected in some of its products.
How to Opt Out of the Arbitration Agreement
Vital Proteins’ terms include a specific opt-out process for new customers who don’t want to be bound by the arbitration clause:
- Write a formal opt-out notice that includes your name, address, and signature.
- Mail it within 30 days of the date you first accepted the Terms and Conditions — the notice must be postmarked by this deadline to be effective.
- Send it to the address specified in the terms (see contact details below).
If you opt out, the rest of the Terms and Conditions still apply to you — only the arbitration requirement is removed. Opting out also has no effect on any other arbitration agreements you may have separately entered into with the company, whether before or after this one.
Why Companies Use Arbitration Clauses
Arbitration is generally faster and less expensive than court litigation, and proceedings are conducted privately rather than as part of the public record. From a consumer standpoint, however, this privacy is also one of the most common criticisms of forced arbitration: it can shield a company’s pattern of complaints from public visibility, and it removes access to the broader legal protections and appeal options available through the court system. Critics of mandatory arbitration also point out that these clauses are typically drafted unilaterally by the company, giving consumers little room to negotiate the terms.
What This Means If You Buy Vital Proteins Products
If you purchase or use Vital Proteins products or services and don’t take steps to opt out within the 30-day window, you’re generally agreeing to resolve any future disputes with the company through individual binding arbitration rather than through a lawsuit or class action. Because arbitration clauses and opt-out procedures can change over time, it’s worth reviewing the current Terms and Conditions directly on Vital Proteins’ website before making a purchase if this is a significant concern for you.
Official Contacts
Vital Proteins, LLC — Legal Department (Arbitration Opt-Out Notices)
Website (Terms & Conditions):
[Login to see the link]
Mailing Address (for Opt-Out Notices):
Vital Proteins, LLC
c/o Legal Department
3400 Wolf Road
Franklin Park, IL 60131
United States
Join The Discussion
Arbitration clauses tucked into product packaging or website terms are becoming a bigger flashpoint in consumer rights conversations, especially after cases like Vital Proteins’ Costco packaging insert went viral. Have you come across an arbitration agreement in a product you purchased, and did you know about your right to opt out? Share your experience, thoughts on how these agreements should be disclosed to consumers, or questions about how arbitration compares to going to court.
