In December of last year, a $5 million lawsuit was brought against the Disney Parks and Resorts on behalf of Magic Key Holders (the Annual passholders in Disneyland). The lawsuit alleged that “Disneyland deceived its most loyal fan base by artificially limiting theme park capacity and blocking passholders with ‘no blockout’ annual passes from making reservations.”
Disneyland
Disney responded to the suit about a week later, filing for the case’s removal and stating that the company was “clear about the terms of the Magic Key product” and would “vigorously defend [their] position as the case proceeds.” Now, several months later, we finally have a new update about this case!
The Orange County Register has reported that a federal judge has denied Disney’s motion to dismiss the $5 million Magic Key Holder case and will allow the lawsuit to move forward in court. The judge (United States District Court Judge David Carter) wrote, “The court finds that plaintiff has adequately pled facts supporting how a reasonable consumer may be deceived by the advertisement, which states ‘no blockout dates.'”
Magic Key Holders Lounge
The Magic Key Program is Disneyland’s Annual Pass system. One passholder — Jenale Nieslen — filed a lawsuit on behalf of all passholders claiming that “the Anaheim theme park misled and deceived its most loyal fans by artificially limiting capacity and restricting reservations.”
Entrance to Disneyland
There are various tiers of Magic Key passes, and the most expensive one is the Disneyland Dream Key, which cost Nielsen $1,399. This pass should have no blockout dates. However, Disneyland guests are still required to make Park Pass Reservations before they can enter a park, and those reservations can (and do) run out.
Disneyland
Nielsen alleged that Disneyland was allocating far fewer Park Pass Reservations to Magic Key Holders than to single-day park guests, which led to many days of sold-out passes for the annual passholders. Although these aren’t technically “blockout dates,” they are days when Magic Key Holders are not able to visit the parks due to a lack of a reservation. The judge who denied the motion to dismiss the case wrote, “Plaintiff argues that ordinary consumers generally understand blockout dates to be ‘dates when tickets, credits, passes, or rewards cannot be used.’”
So Neilsen is basically arguing that if any Park Pass Reservations are available (even for single-day park guests), they should be open to annual passholders as well.
Magic Key Lounge
Disney responded to the lawsuit in early March by trying to have the case dismissed. A judge dismissed 4 of Nielsen’s 6 allegations but has allowed 2 of the allegations to move forward. The 4 allegations that were dismissed include those relating to “claims of false advertising, negligent misrepresentation, legal disclosure, and unfair competition.” The 2 allegations that will move forward include breach of contract and the California consumer protection act.
Disney California Adventure
The Register reported that “Disney lawyers answered the complaint in late April and Nielsen’s attorneys filed an amended complaint on May 10.” Disney still denies each allegation and complaint.
The case will likely come down to 2 points: (1) “whether a Disneyland Dream Key annual pass constitutes a good or service as Nielsen’s lawyers contend or a temporary license as Disney contends” and (2) “the meaning of “blockout dates” and what that definition includes and excludes for passholders and Disneyland.”
Magic Key Embroidery options
Disney has denied that Disneyland blocked out dates to Dream Key passholders, and Neilsen’s lawyers allege that “Disneyland has the power to artificially limit theme park reservations and decide when to make Dream Key passholder reservations available or unavailable.”
Note that the Disney Dream Key and Believe Key are both currently sold out. The Enchant Key and Imagine Key are still available.
Disneyland
We’ll continue to watch for more updates on this case, so keep following DFB for the latest news.
Learn more about the lawsuit here.
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Anyone with a valid annual pass (at Disneyland or Disney World) should be allowed to enter the park on any day their pass is good for. As a pass holder that doesn’t live near the parks I have to pla my days there. Pass holders that live close enough to go everyday should be able to do so. Disney restricting reservations to people that buy single day tickets and not allowing pass holders to go when the parks aren’t at capacity is plan and simple theft and a money grab!
No way that Disney should be denying a park reservation to an annual passholder with no blockout dates when they are still selling them to single day guests. That’s just greedy double dipping. I hope this lawsuit results in the termination of park reservations and the 2pm park hopping rule.
Go Jenale!
A lot of bad vibes coming from those in charge at Disney. Not at all in tune with loyal guests who were willing to part with $1400 to assure no block out dates. It seems Disney likes biting the hand that feeds them.
Disneyland serves a different guest demographic than WDW. Disney World guests are more than willing to pay to play Disney’s games and don’t care if prices are increased and amenities removed. Not so much on the west coast. Good for them. My allegiance to Disney is over. Our next trip is to Universal.
I hope Disney loses this case. Clearly Disney mislead its customers.
Such a dumb lawsuit. It’s perfectly clear, in black and white easy to understand print, that the Key or Annual Pass does NOT guarantee you will be able to enter the parks or make a reservation. Your ability to do so is limited by the park capacity on any given day. No blockout dates does not mean “you can enter the park on any day you want to enter.”
Even a non lawyer like me can read and understand the terms. We have the Sorcerer Pass for Florida and our only blockout dates are Thanksgiving Week and Christmas weeks. But we can’t get reservations at all the parks on some days because they are full. Just like the terms and conditions stated when we purchased the pass.
Those Key holders didn’t read the terms or simply don’t believe those terms apply to them. I hope they lose, but then a woman spilled hot coffee on herself in a moving car and somehow convinced a jury that it was the restaurant’s fault.
I hope the Passholders win this lawsuit. Disney charges an outrageous amount of money for the passes that have no blockout days. No other business could get away this. Passholders who purchase passes with no blackout days should not be denied admission unless the parks are at capacity for everyone.
On its face I believe this annual passholder has a valid argument re the changes the park reservation system has caused. Of course Disney even if they lose the case, will just retaliate by not selling any more annual passes ever. Typical Disney.
It’s about time Disney is finally held accountable for their actions. For many years I have been an enormous Disney fan:the classic animation films, merchandise and theme parks, when it was affordable to visit. They have continued to be very greedy and now I have been unsure if their claimed Pixie Dust is worth the actual price. Individuals actions towards others at the parks has gone from bad to worse and I feel it’s jeopardizing the safety and enjoyment of guests. Along with those things, they have made some very unwise decisions as of late. Action needs to be taken! Disney, I still love you, but the old you. If Walt and Roy were still alive, they truly would be appaled by their company’s behavior.
Should be interesting. I have an annual pass at Disney World. No blackout dates, yet I can’t just decide one morning to go. Not without a park reservation. Also, I can only make 5 reservations at a time. No blackout dates is pretty clear in meaning, just not in practice.
In WDW if your have an annual pass and are not staying on property, you are limited to 5 days of reservations at a time. Not what was sold / accepted prior to COVID when the were no limits.
This is exactly what I said to guest relations at Walt Disney World after I renewed my “NO BLOCK OUT DATES” Annual Pass. My exact feelings. And I was told I knew how the reservations system worked …in other words I was out of luck! I wish I knew where I could go for Florida APs for a lawsuit.
Disney deserves to lose this case but the consequence should be that all annual passholders receive free passes for the next 3 years. The management of Disney has really shown they don’t care as much about their consumers as they used to. This is very sad.
Not a lawyer, so…
One problem with this case is that there have been times when various parks would close because they had reached capacity for the day. Having an annual pass would NOT let you enter that park on that day even though it was not a blackout date for your pass.
The reservation system, at least, lets you know that you couldn’t get into the park BEFORE you got there.
The idea that “if any Park Pass Reservations are available (even for single-day park guests), they should be open to annual passholders as well” is the basis of the case. Tricky.
I agree with the lawsuit. Disney is greedy greedy greedy. If something says no block out dates I interpret it exactly as it says. I believe the consumer will be able to show that Disney played games with the reservation system.
I have the believe key which is the second tier, and I can sympathize with the lawsuit. I have had two issues with the passes. One: We had two trips to Disneyland planned which amounted to 8 days. So, I went to do park passes after I had the room taken care of and I could only make it for six days. When I called to ask why they said I was limited to six only until I used them up first, so we would have to just hope the two additional days would be open at the end of the second vacation, so we ended up cancelling one vacation.
Two: We had a vacation upcoming soon, and I was able to make reservations for five days only because they told me there were only so many reservations for pass holders available – this even though the general calendar showed those days open. I could buy regular tickets because they were available, but I could not use my pass. With the old passes, we never had this problem.
Yep. Same thing happened in Orlando. We booked a hotel a few times and bought a day ticket once so we could go with our family because all the passholder reservations were “sold out”.
I feel that it is unscrupulous for Disney to enact the park pass system even though one may hold a Park Ticket. it’s the same situation as the “Key: holder. Just another case of “Money Grubbing”
I hope the plaintifs win and it becomes a class action suit so that all pass holders win. The new reservation system is BS. Many times pass holders want to make a reservation, but it is sold out. However non-pass holder single day tickets and reservations are available. So what good is to have a certain amount of days with an annual pass and your can’t get in when there are days open to non-pass holders? If the park is not sold out on a certain day, it should be open to all guest be it pass holders or not.
This issue isnt with the reservation system but that should be near invisible to the consumers. there should never be a limit on the reservation system unless a law forbids it. example would be the legal limitation disney has on the ability to allow so many people into a park on any given day. in that case it is not Disney’s fault. However, other than that, Disney should be liable to a lawsuit for artifically limiting park attendance for reasons purely to the advantage of the Disney Corporation. Class Action Lawsuit ineed should happen. and the CEO needs to be FIRED already. he cant run the business. he has been promoted beyond his ability to perform.
One needs to be done about Disney world. We have the same issues with our annual passes. I’m paying for no block out dates or restrictions on entering the park and it’s been horrible trying to get my turn it’s either the parks are full or the reservation system is down and won’t allow you to make them.. I want the days when you could enter the park on a last minute decision.
I believe one main point of the lawsuit is that reservations were not available to Magic Key holders on certain days yet available to paid gate admission customers on the same day. Therefore blocking out Magic Key holders to increase paid admission could be a breach of intention.
If she had read the rules and was capable of understanding them, she would have know that a valid park reservation was required, and availability was limited.
When will people relearn that they are responsible for their own due diligence?
Robbie, please read what Don wrote. He explains why this lawsuit was allowed to go forward. Whether or not It can be proven that Disney blocked Magic Key holders in favor of paid admission day guests to increase their bottom line, well that may be difficult to prove.
I wish I could have got in on this law suit I don’t have the unlimited pass and they have still screwed me out of thousands! I will not be renewing my pass it’s just not worth it! They say the date is not blocked out so I plan a whole trip around that and then completely change there mind and now I have to buy regular tickets! Even though the park is not at capacity, and the dates were not blocked out a month ago!