When Disney changed its terms of service for Disney+, ESPN+, and Hulu, it wasn’t just another update— it was a potential game-changer for subscribers and freelance workers.
For years, Disney’s contracts with consumers and creators were more or less straightforward, but now, the company has added a clause that restricts your right to sue them. Instead, subscribers are now agreeing to binding arbitration—an option that is often quicker, but can feel more closed-off and restrictive than court proceedings. Here’s what you need to know and what actions you might want to take to avoid being caught off guard.
Jeffrey Piccolo’s Legal Battle Brings Arbitration to Light
The most recent high-profile case that brought this issue to the public’s attention was the lawsuit filed by Jeffrey Piccolo, whose wife tragically died after a severe allergic reaction at Disney World. Piccolo had visited the Raglan Road Irish Pub & Restaurant with his wife, Dr. Kanokporn Tangsuan, and his mother. Despite inquiring several times about the food’s allergy accommodations, Tangsuan died after consuming food that contained allergens.
Piccolo filed a wrongful death lawsuit against Disney Parks and Resorts for negligence. However, Disney filed a motion to dismiss the lawsuit, citing the arbitration clause in the Disney+ terms of service that Piccolo agreed to years ago. The company argued that, because of the Disney+ subscription agreement, the dispute should be resolved through arbitration rather than in court.
In a nutshell, Disney claims that when Piccolo signed up for Disney+ (even under a free trial), he unknowingly agreed to resolve any disputes via arbitration. Piccolo’s legal team, however, contests this, suggesting that arbitration should not apply to a claim related to a tragic incident at a Disney-owned restaurant, one that had nothing to do with the streaming service itself.
Mark Waid Warns: Arbitration Could Affect Freelancers
Mark Waid, a prominent comic book writer known for his work with Marvel, has sounded the alarm on these same terms. He shared on social media that Disney+ subscribers need to check the new terms of service, especially freelancers who may be concerned about their work with Marvel or other Disney subsidiaries.
Waid’s warning is simple: If you’ve agreed to Disney’s updated terms, you may not have the option of suing Disney or its affiliates in court if a legal dispute arises in the future. Instead, you could be forced into arbitration.And this includes disputes involving Marvel and the creative rights of freelancers.
In his social media post, Waid highlighted a clause in the new terms of service (item 7G) that requires Disney+ subscribers to either opt out of arbitration by sending a physical letter within 30 days of accepting the agreement or risk losing the right to take Disney to court for any future issues. This has important ramifications for anyone working with Disney’s creative divisions, including comic book creators, who may now find themselves subject to arbitration instead of being able to seek legal recourse in a courtroom.
What’s in the New Disney+ Terms of Service?
Disney’s updated terms of service for Disney+, ESPN+, and Hulu (which are now all owned by the company) include a binding arbitration clause. This clause means that if a subscriber wants to resolve a legal dispute with Disney, they must submit to arbitration—a private process where a third-party mediator helps resolve the issue. Crucially, arbitration is often quicker than a traditional lawsuit, but it limits transparency and the ability to appeal decisions.
The new terms also include a class action waiver, meaning that Disney+ subscribers cannot join forces with others to file a collective lawsuit. Each dispute must be handled individually, even if the issue is widespread.
Freelancers and creators in the comic book industry, particularly those who have worked with Marvel, should pay special attention to this clause. Mark Waid’s caution highlights a growing concern in the creative community—that they could lose access to the traditional court system in disputes over intellectual property, royalties, and other financial matters.
How to Opt-Out of Arbitration: What You Should Do
If you’re a Disney+ subscriber who doesn’t want to be bound by this arbitration clause, you can opt out. However, this requires you to take action quickly.
You must mail a letter to Disney within 30 days of accepting the new terms of service. The letter should include:
- Your full name and address
- The email address you used for your Disney+ subscription
- A clear statement that you want to opt out of the arbitration agreement (and if applicable, the class action waiver)
Importantly, emails will not be accepted—you must send a physical letter to the following address:
Disney Opt-Out
P.O. Box 11565
Burbank, California, 91510
By sending this letter within the 30-day window, you’ll be able to preserve your right to take any future legal disputes to court.
What Does This Mean for Freelancers and Consumers?
For freelancers, especially those in industries that deal with intellectual property (such as comic book creators or independent contractors), this update is important to consider. If you work with Disney (or Marvel), any future disputes may be limited to arbitration, where legal remedies and public transparency can be reduced.
For the average subscriber, the changes might seem like a minor inconvenience. But in the event of any future dispute with Disney, you could find yourself stuck with arbitration instead of the option of pursuing a courtroom trial.
Act Now to Protect Your Legal Rights
For those who want to preserve their ability to pursue legal action, acting quickly is key. By opting out of the arbitration clause within 30 days, you can ensure that Disney cannot limit your access to the legal system in the future.
Whether you’re a freelancer concerned about your intellectual property rights or a subscriber who wants to keep your options open, now is the time to take action. Be sure to check the updated terms of service for Disney+, ESPN+, and Hulu, and if needed, send that opt-out letter to Disney’s Burbank office.
In a world where corporations are increasingly shifting the terms of their contracts to reduce accountability, staying informed and proactive could make all the difference in protecting your legal rights.
