Can You Sue Disney? Understanding Legal Claims Against the Company

Suing Disney has become an increasingly difficult task for those with Disney+ memberships, as a significant update to the company’s terms and conditions has made legal action nearly impossible. For subscribers who want to avoid arbitration and maintain the option of pursuing lawsuits, they must act swiftly — and be aware of how these changes could affect their rights in the future.

The Case of Jeffrey Piccolo: Arbitration in the Spotlight

The issue of arbitration clauses first gained widespread attention with the lawsuit filed by Jeffrey Piccolo.

After his wife, Dr. Kanokporn Tangsuan, tragically died from a severe allergic reaction at Disney World in October 2022, Piccolo filed a wrongful death lawsuit against Disney Parks and Resorts.

His wife had consumed food containing allergens at Raglan Road Irish Pub, a restaurant on Disney property, despite the family repeatedly inquiring about her allergies. Despite assurances from the staff, Tangsuan died after having an allergic reaction.

Piccolo’s lawsuit, seeking $50,000 in damages, alleges that Disney was negligent in ensuring the safety of restaurant patrons, particularly those with food allergies. However, Disney responded by requesting the case be dismissed and sent to arbitration. They argued that by signing up for Disney+ years ago, Piccolo had agreed to resolve disputes with the company via binding arbitration, not through litigation.

Disney’s legal team pointed out that Piccolo had accepted terms when signing up for the Disney+ free trial and when purchasing Disney park tickets online. They argued that the arbitration clause covered not just disputes related to Disney+, but any dispute involving Disney or its affiliates.

Piccolo’s legal team fired back, stating that terms related to a streaming service should not apply to a serious, unrelated matter like his wife’s death.

Mark Waid Sounds the Alarm: Arbitration Now Extends to Marvel and More

While Piccolo’s case brought attention to Disney’s arbitration policies, another major concern has arisen thanks to comic book writer Mark Waid. Waid, who has worked with Marvel Comics, warned the comic book community about the implications of the latest Disney+ terms of service (ToS) update, specifically for freelancers and creatives.

On social media, Waid described the new terms as a “red alert” for anyone in the comics industry. He explained that the latest ToS update for Disney+, ESPN+, and Hulu now includes a clause that prohibits users from pursuing legal action against Disney in court. Instead, disputes would need to be resolved through binding arbitration.

In his post, Waid emphasized, “If you do not send them a PHYSICAL LETTER within 30 days of accepting these new ToS, you cannot sue. You will be forced into arbitration, no exceptions.”

The full post reads, “I cannot stress strongly enough that this is a red alert for all comics freelancers. I checked the new Disney ToS myself. I can vouch that this article is 100% real and accurate.

As I understand it, if you have a Disney+, ESPN+, or Hulu streaming account, check their new ToS, item 7G, immediately to verify this for yourself: If you do not send them a PHYSICAL LETTER within 30 days of accepting these new ToS, if in the future you have a legal dispute with Disney or any of its companies *including Marvel*, you cannot sue. You will be forced into arbitration, no exceptions. Even if you terminate your streaming account.
Please see for yourself.”

Disney+ Arbitration Clause: What You Need to Know

The updated Disney+ Terms of Service, which applies to Disney+, ESPN+, and Hulu subscribers, includes an arbitration agreement that restricts users’ ability to take legal disputes to court. The clause reads as follows:

• Arbitration Requirement: By agreeing to Disney+ terms, users must resolve all disputes with Disney and its affiliates through arbitration, not through lawsuits.
• Class Action Waiver: Subscribers also waive the right to participate in class action lawsuits.
• Jury Trial Waiver: Users give up the right to a jury trial for any legal disputes.
• Marvel and Other Affiliates: This includes disputes related to subsidiaries like Marvel Comics, which is part of Disney.

Waid’s concern primarily affects those in the comics industry, where ownership rights and compensation issues are common. For comic book creators, this means that disputes with Disney (including Marvel) could be settled through arbitration, not a public courtroom.

Exceptions to the Arbitration Agreement

While this clause is broad, it is not all-encompassing. There are a few exceptions to the arbitration agreement:

• Small Claims Court: Users can still pursue claims in small claims court, provided that the dispute is individual and not part of a class action.
• Intellectual Property Rights: Disputes over intellectual property rights (such as the ownership of creations) are not subject to arbitration.

However, these exceptions are narrow, and the general rule is that Disney will seek to have most disputes resolved outside of the traditional court system.

How to Opt Out of Arbitration

If you’re a Disney+, ESPN+, or Hulu subscriber and want to preserve your right to take legal action in court, you can opt out of the arbitration agreement. However, you must act quickly.

To opt out, you need to send a physical letter to Disney within 30 days of agreeing to the new terms. This letter must include:

• Your name and address
• The email address you used for your subscription
• A clear statement saying that you wish to opt out of the arbitration agreement (and if applicable, the class action waiver).

The opt-out notice must be mailed to the following address:

Disney Opt-Out
P.O. Box 11565
Burbank, California, 91510

Important: Opt-out notices sent via email will not be accepted, so ensure that your letter is sent by mail.

The Impact of This Change on Disney+ Subscribers

This new arbitration clause significantly impacts Disney+ subscribers, including those using ESPN+ and Hulu. It could limit their ability to sue Disney or its affiliates, even for major disputes, and force them into a potentially private and more controlled arbitration process instead.

While arbitration is often marketed as quicker and less expensive than litigation, it does raise concerns about fairness and transparency. For consumers who are used to being able to pursue legal recourse in a court of law, this shift represents a major legal roadblock.

If you’re a Disney+ subscriber, especially one who may encounter legal disputes down the road, it’s crucial to be aware of these changes and take steps to opt out if you wish to preserve your ability to sue. Time is of the essence, so if you want to keep your options open, make sure to mail that letter and opt out within the 30-day window.

By taking action now, you could safeguard your legal rights and avoid being bound by arbitration clauses that could limit your ability to seek justice in court.