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Magic Key lawsuit

Disney Addresses $5 Million Lawsuit in New Pass Terms and Conditions

In January 2021, Disneyland Annual Passholders were devastated when they received an email saying that Disney was ending its Disneyland Resort Annual Pass program. In that same email, Disney said that it would be introducing a newly reimagined Pass program at a later time. Eight months later — in August 2021 — Magic Keys were introduced. There were four Magic Keys that Guests could purchase — the Dream Key, the Believe Key, the Enchant Key, and the Imagine Key — and one of those Keys has led to a $5 million lawsuit.

Magic Key Cover

Credit: Disney

The top-tier Magic Key — the Dream Key — cost $1,300 and promised Guests 6 theme park reservation holds and no blackout dates. However, there were times when both Disneyland Park and Disney California Adventure were booked for weeks at a time. One Dream Key Holder filed a $5 million lawsuit against The House of Mouse, claiming deceptive practices — Disney promised no blackout dates, but then limited the number of Magic Key Holders who could book Park reservations at Disneyland Park or Disney California Adventure on any given day, therefore, artificially creating blackout dates.

California Adventure

Credit: Disney

Disney moved to have the lawsuit dismissed, but a judge denied the motion and the lawsuit is moving forward. While Disney has remained relatively quiet on the matter, it looks like the company has addressed the lawsuit in its new Magic Key terms and conditions. On August 16, Disney finally released Magic Key renewal information with some updated terms and conditions. The new Terms and Conditions say the following about class-action lawsuits:

YOU AND DISNEY (DEFINED FOR PURPOSES OF THIS BINDING ARBITRATION AGREEMENT AND CLASS ACTION WAIVER TO MEAN WALT DISNEY PARKS AND RESORTS U.S., INC. AND ALL OF ITS AFFILIATES) EACH AGREE THAT ANY DISPUTE OR CLAIM RELATING IN ANY WAY TO YOUR DISNEYLAND RESORT MAGIC KEY WILL BE RESOLVED BY BINDING ARBITRATION, WITH THE SOLE EXCEPTION OF CLAIMS THAT QUALIFY FOR SMALL CLAIMS COURT AS SET FORTH BELOW.

YOU ACKNOWLEDGE THAT YOU AND DISNEY ARE EACH WAIVING THE RIGHT TO FILE A LAWSUIT (WITH THE SOLE EXCEPTION OF CLAIMS THAT QUALIFY FOR SMALL CLAIMS COURT AS SET FORTH BELOW) AND THE RIGHT TO A JURY TRIAL. YOU AND DISNEY ALSO AGREE THAT ANY AND ALL DISPUTES MUST BE BROUGHT IN THE PARTIES’ INDIVIDUAL CAPACITIES. YOU AND DISNEY THEREFORE AGREE TO WAIVE ANY RIGHT TO LITIGATE OR ARBITRATE ANY CLAIMS AS A CLASS ACTION OR OTHER REPRESENTATIVE OR COLLECTIVE ACTION.

Disneyland Forever Fireworks

Credit: Disney

It is interesting to note that Disney no longer offers the Dream Key. Guests who currently have a Dream Key can still renew their Pass, but can either downgrade or purchase the new top-tier Inspire Key. Unlike the Dream Key, the Inspire Key does have blackout dates — December 21 through January 1 — but still allows six theme park reservation holds at one time.

Disneyland Closed

Credit: CNBC

Back in late May 2022, Disneyland stopped the sale of all Disneyland Magic Key Passes. Those sales are still suspended, and Disney has not shared if and when it will resume the sale of Magic Keys.

You can read more about Disneyland Resort’s Magic Key program by clicking here.

About Krysten Swensen

A born and bred New England girl living the Disney life in Southern California. I love to read, to watch The Golden Girls, and love everything to do with Disney and Universal. I also love to share daily doses of Disney on my Disney Instagram @BrazzleDazzleDisney!