NEWS: Disney Settles Park Pass Reservation Lawsuit

Disneyland’s Annual Passholder program, known as the Magic Key, is still fairly new, yet Disney’s new passholder system faced a $5 million lawsuit shortly after debuting.

Like Disney World’s Annual Passholder program, Magic Key holders are required to book Park Reservations ahead of their visit. Depending on the Magic Key pass purchased, guests have varying levels of blockout dates, with the highest tier (the Dream Key) claiming to have no blockout dates. Due to some Passholders’ conflicts with Disney’s blockout date language and the park pass reservation system, a lawsuit was born.

Background

Back in 2021, a Magic Key holder filed a lawsuit against Disney, stating that Disneyland falsely advertised its Magic Key passes. The lawsuit further alleged Disney artificially limited park capacity and blocked Dream Key Passholders (with “no blockout dates”)  from making park pass reservations.

The lawsuit claimed that Disney relegated Magic Key holders “to ‘second class’ ticket holders by artificially limiting Magic Key reservations and the number of Passholders that can visit on any given day.”

Click here to learn more about the lawsuit

Shortly after the class action suit was filed in the U.S. District Court, Disney responded to the claims. Disneyland spokesperson Lix Jaeger stated, “We have been clear about the terms of the Magic Key product and we know that many of our guests are enjoying the experiences these passes provide,” according to the Los Angeles Times. 

Disney also responded in court, requesting that the case be dismissed, but a judge allowed two claims to move forward: one relating to the California Consumer Protection Act and one relating to breach of contract.

We’ve been following the case since it was originally filed, and now, it seems like the lawsuit may be coming to an end.

The Latest Update

New court documents reveal that the Disneyland Magic Key lawsuit has been settled. This update comes after both parties attended an all-day, in-person mediation before a judge in California on July 19th, 2023. The terms of the settlement were not disclosed.

The lawsuit isn’t completely over yet, though. Both parties have until August 31st, 2023 to finalize the terms, per the notice of settlement. Then, a judge must rule on the proposed order.

Interestingly, Disney World Annual Passholders filed a similar lawsuit in Florida, and that case is ongoing. Could Disneyland’s recent settlement news indicate a settlement may be coming on the east coast, too? Note that the Disney World Annual Pass lawsuit involves different plaintiffs, so a settlement is not guaranteed in this case.

We will continue to monitor the status of both lawsuits, so stay tuned for additional updates. In the meantime, we’re always on the lookout for the latest Disney news, so stick around for more.

How a $5 Million Lawsuit CHANGED Disneyland’s Annual Pass Program

 

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