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FLORIDA RECORD

Friday, May 3, 2024

Judge expected to approve $9.5 million Disney settlement for Magic Key Park pass holders

Federal Court
800px disney world   entrance sign   by inkiboo

A judge is expected to approve a $9.5 million settlement agreed to by Disney as a way of compensating a class of more than 100,000 Magic Key Park pass holders.

But it could take several months, according to an attorney familiar with the case.

“The parties have asked the judge to preliminarily approve the proposed settlement and to certify a class of Disney passholders for the purposes of collecting proceeds for the settlement,” said David Marcus, a law professor at the University of California, Los Angeles. “So, the judge still has to approve the settlement, and that is a fairly involved process that will unfold over the next three months or so.”

The form of payment will be $67.41 to each class member, according to media reports.

“It means Disney can't get away with misleading its customers and this case forces Disney to pay for that,” Marcus told the Florida Record. “The idea is that Disney will take this into account the next time it figures out how to market some kind of ticket package.”

Jenale Nielsen filed the complaint in December 2021 after a $1,400 Dream Key pass she purchased fell below her expectations.

“Some people in the class seemed to believe that it entitled them to go to the park anytime they wanted but there were these blackout dates, even on days when the park wasn't sold out,” Marcus said in an interview. “It’s a straightforward consumer protection-type claim. There was the allegation that there was this aggressive marketing effort and consumers believe they were misled.”

Tickets start at $80, but a $9.5 million settlement for a company like Disney may not be significant.

“It’s just not that big of a deal and it may not have a significant impact on their marketing practices in the future,” Marcus said. “In theory, one would hope that it does but $9.5 million doesn't strike me as all that much.”

Hey Orlando reported that Disney earned $28.7 billion in revenue in 2022 from its worldwide parks.

“Even though the $67 is less than an $80 price of a basic ticket to attend for a day, it actually is probably costing Disney a good deal more because it's cash,” Marcus added. “It's costing Disney a good deal more in real value than it would cost Disney if it just forked over a ticket to come to the theme park someday.”

If Disney were to award plaintiffs with a free ticket, it would be inconsistent with the idea that Disney should pay for its wrongdoing, according to Marcus.

“By enticing someone to come to a park, Disney actually may come out on top,” he said. “Disney may make $40 of those $80 back, or $50 or even one hundred dollars back from concession and souvenir sales."

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