The Disneyland Annual Passholder program, known as Magic Key, faced some serious scrutiny after its debut, eventually leading to a multi-million dollar lawsuit.
Under the current Magic Key system, Magic Key holders must book park pass reservations ahead of their visit. Disney offers several types of Magic Key passes with varying levels of blockout dates. The Dream Key, though, is advertised to have no blockout dates. After purchasing the Dream Key, some Magic Key holders had a conflict with Disney’s blockout date language and the park pass reservation system, leading to a lawsuit against Disney.
The lawsuit started in 2021 when a Magic Key holder filed a lawsuit against Disney, stating that the company 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 alleged that Disney treated Magic Key holders as “‘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
Disney soon responded to the lawsuit, stating, “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,” per the Los Angeles Times.
On July 21st, 2023, court documents revealed that the Disneyland Magic Key lawsuit had been settled. The settlement was then reviewed by a U.S. District Court judge in October, who has given preliminary approval of the Magic Key settlement. Now, a final approval hearing is set for February 2024, according to the Orange County Register.
Court documents reveal that one final approval hearing for the Disneyland Magic Key settlement is set for February 20th, 2024. Then, payments will be dispersed within 60 days of the ruling. If the $9.5 million Magic Key settlement is approved, Disney will pay 103,435 Dream Key passholders a total of $67.41 each.
Dream Keyholders may soon receive an email from a settlement administrator with instructions on how to receive the money electronically, per the Orange County Register.
In the meantime, we’re always on the lookout for the latest Disney news, so stay tuned for more.
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Are you a Magic Key holder? Let us know in the comments!
$67.41 is slightly more than the $50 increase announced last week on the Inspire Key, currently the highest level key available at Disneyland, and I doubt that is a coincidence. Of course, the Dream Key has been discontinued and no other Disneyland APs are without blackout dates, thus ensuring no other future lawsuits.