Disney Settles Class Action Lawsuit Claiming Magic Key Annual Pass Deceived Consumers

The Walt Disney Company has settled a $5 million class action lawsuit brought by fans who claimed the Magic Key annual pass for Disneyland didn’t grant them unlimited access to the park as promised.

The federal suit, which was initiated by a Disney fan named Jenale Nielsen, alleged Disney deceived consumers who purchased the Magic Key — the most expensive pass — into thinking they would have unlimited access to the Anaheim, California park.

A family poses for a picture inside the Magic Key Starcade Experience at Disneyland in Anaheim, CA, on Wednesday, September 1, 2021.  (Jeff Gritchen/MediaNews Group/Orange County Register via Getty Images)

But, they claimed, in reality, many days were blocked out because daily ticket sales were given priority. The lawsuit accused Disney of favoring daily ticket sales over reservations made by Magic Key holders.

Both sides have until the end of next month to figure out the details fof the preliminary agreement before it is approved by the court, according to the Disney site Daps Magic.

Jenale Nielsen filed the original suit in 2021 after purchasing a  $1,399 Dream Key pass — the most expensive Magic Key tier.

Nielsen claimed she believed she could visit Disneyland any day she wanted, because Disney promoted the Dream Key as having “no block-out dates.”  But she soon discovered that she couldn’t get in for most of the month of November, including every weekend, according to the lawsuit.

The complain also alleged Disney deliberately limited the number of Dream Key reservations that were available on any given day in order to maximize single-day-pass sales.

Disney continues to face multiple financial challenges as theme park attendance is faltering amid record inflation and economic uncertainty that is keeping many families away. In addition, the woke studio has experienced an unprecedented string of box-office flops including The Little Mermaid, Indiana Jones and the Dial of Destiny, and Pixar’s Elemental.

Elemental, which had the worst opening of any movie in Pixar history, featured the studio’s first gender “non-binary” character in a theatrically released movie.

CEO Bob Iger recently laid off 7,000 workers worldwide following a disastrous 2022 that saw the company’s stock tank and profitability take a serious hit.

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