A wrongful death lawsuit against Walt Disney Parks and Resorts highlights the importance of paying close attention to the fine print when signing up for streaming services or smartphone apps.
The lawsuit was filed by the family of a New York woman who passed away after dining at a restaurant in Disney Springs, an outdoor dining, shopping, and entertainment complex in Florida owned by Disney.
Disney is arguing that the lawsuit should be dismissed because the plaintiff, the woman’s husband, had previously signed up for a trial subscription to the Disney+ streaming service.
They contend that the service includes a subscriber agreement in which the customer agrees to resolve any legal disputes with Disney through arbitration, rather than in court.
Such agreements, often accepted by consumers with a quick click of “I agree” when downloading an app or subscribing to a streaming service, can be heavily biased in favor of the company, making it difficult for consumers to seek fair legal recourse, according to John Davisson, director of litigation at the Electronic Privacy Information Center.
“The consumer is presented with this contract and really doesn’t have an opportunity to negotiate the terms,” Davisson explained. “It’s yes or no.”
The family of Kanokporn Tangsuan, a 42-year-old New York doctor, alleges in the lawsuit that she suffered a fatal allergic reaction after eating at an Irish pub in Disney Springs.
According to the lawsuit, Tangsuan, her husband Jeffrey Piccolo, and his mother chose to dine at Raglan Road in October 2023 because Disney’s website promoted the establishment as offering “allergen-free food.”
The lawsuit claims that Tangsuan repeatedly informed their server of her severe allergies to nuts and dairy products and that the waiter “guaranteed” that the food was free of these allergens.
However, about 45 minutes after finishing their meal, Tangsuan began having difficulty breathing while shopping, collapsed, and later died at a hospital.
The lawsuit states that a medical examiner determined her cause of death as “anaphylaxis due to high levels of dairy and nut in her system.”
In a statement released this week, Disney expressed that it is “deeply saddened” by the family’s loss but emphasized that the Irish pub, also named in the lawsuit, is not owned or operated by Disney.
From a consumer protection perspective, Disney’s defense centers on the argument that Piccolo had agreed to settle any lawsuits against Disney through arbitration when he signed up for a one-month trial of Disney+ in 2019, acknowledging that he had reviewed the subscriber agreement.
The company’s motion to dismiss the case cites the first page of the Subscriber Agreement, which states, in all capital letters, that “any dispute between You and Us, Except for Small Claims, is subject to a class action waiver and must be resolved by individual binding arbitration.”
Arbitration is a process that allows disputes to be settled outside of court, typically involving a neutral arbitrator who reviews the evidence and arguments before making a binding decision.
Piccolo’s lawyer, in a response filed this month, argued that it is “absurd” to suggest that the more than 150 million Disney+ subscribers have waived all rights to sue Disney and its affiliates indefinitely, especially when their case is unrelated to the streaming service.
While it’s challenging to provide actionable advice to consumers when these agreements are so heavily tilted in favor of companies, Davisson recommends supporting lawmakers and regulators who are focused on addressing these issues.
The Federal Trade Commission (FTC) has historically favored disclosure terms that protect companies, even though these agreements are often dense and difficult for the average consumer to fully understand. However, Davisson notes that there has been a shift in awareness among policymakers and federal regulators.
“Generally, it’s understood that it is literally impossible for consumers to read, interpret, and fully understand all of the contracts they’re being asked to agree to as they go about their day,” Davisson said.
“Especially in an increasingly online world where we’re interacting with dozens or hundreds of platforms and services daily.”
