Disney has backed down and said it will not enforce a little-known clause in the fine print of its streaming platform against a plaintiff in a wrongful death lawsuit.
Last week, it emerged that a widower, Jeffrey Piccolo, was suing Disney and the owners of a restaurant after his wife died due to a severe allergic reaction to a meal served in Disney World in Florida.
Disney had argued that the man could not sue the company because of a clause in the terms and conditions he agreed to when he signed up for a free trial of Disney+. The fine print stated that he agreed to binding arbitration in any dispute with Disney, which meant he wasn’t entitled to sue.
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By continuing you agree to our Terms and Privacy Policy.Following a backlash, the company has now changed its mind and agreed to waive the clause and allow the lawsuit to proceed.
In a statement chairman of Disney Experiences, Josh D’Amaro, said, “At Disney, we strive to put humanity above all other considerations.
“With such unique circumstances as the ones in this case, we believe this situation warrants a sensitive approach to expedite a resolution for the family who have experienced such a painful loss.
“As such, we’ve decided to waive our right to arbitration and have the matter proceed in court.”
The incident occurred in 2023 at a restaurant called Raglan Road, which is a tenanted venue at Disney Springs, a dining and shopping complex that’s part of the Disney World Resort and does not require an admission ticket to access.
While it was Piccolo’s legal team that sought to bring the terms and conditions into play in the lawsuit, Disney’s initial application of the clause garnered a lot of attention and negative publicity for the entertainment giant.
In Australia, anyone signing up to Disney+ agrees to five sets of terms and conditions. Three are related to privacy and data collection while one is the Disney Terms of Use and the other is the Subscriber Agreement.
The Disney Terms of Use, which the binding arbitration clause is contained in, is an American document.
The Subscriber Agreement is specific to the Australian market and issued by the Walt Disney Company Australia and supersedes the US Terms of Use. It features a section on dispute resolution but does not mention binding arbitration.
Australians are also protected by federally legislated consumer laws.