I bought chips and when I opened the bag it smells like oil that turned bad?!

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Yep, oil turns rancid after a few weeks, even if it is a sealed product. If the store sold it past its due date you are owed a refund. Otherwise, write to the manufacturer. they at least owe you another bag!

As other people mentioned, the oil probably is bad if it smells bitter or otherwise "off." I made the mistake of trying to eat some chips like that once. It had absolutely no effect on my health, but they taste like they smelled and it did leave an acrid aftertaste in my mouth for hours.

No, take it back, when in doubt, throw it out, or get a refund at least from the store you bought it from. Check the "Best By..." Date and see what it says.

It is not safe to eat. If it smells bad it is probably bad. Is it out of date?