The hidden cost of clicking ‘agree’ when it comes to consumer rights

Aug 21, 2024

Lauren Taylor Anchor/Reporter

By Lauren Taylor (Anchor/Reporter), Mathew Grisham (Digital Producer), Mirlie Larose (Producer), Jack Henry (Video Editor)

If you’ve ever signed up for a cellphone plan, a streaming service, or created an account on a website, chances are you’ve signed away your right to sue that company for wrongdoing. Most of us don’t even realize it. But during the week of Aug. 18, that reality took center stage in a lawsuit against Disney.

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One person, Jeffery Piccolo, filed a wrongful lawsuit against Disney. He claims his wife died from an allergic reaction after dining at a Disney Springs restaurant.

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Disney denied any wrongdoing. The company argued that Piccolo had twice waived his right to sue. Once, when he signed up for Disney+, and again when he used Disney’s website to purchase park tickets.

Buried deep in the fine print of the terms and conditions was a clause agreeing to resolve disputes through arbitration instead of the court system. The case grabbed public attention, and Disney backed down after facing outcry.

Many people sign up for services and check the box that we agree to the terms. Hidden in these terms are often arbitration clauses. That means if something goes wrong, disputes are handed privately, outside the court system.

Most U.S. consumers are subject to arbitration clauses, often without knowing it. In 2018, more than 826 million such clauses were in effect, and that number has increased with the number of existing streaming services.

From banking scandals to workplace discrimination claims, these agreements make it harder to challenge corporations in a public courtroom.

Tags: arbitration, Death, Disney, Disney Plus, Disney+, Disneyland, Human Rights, Lawsuit

Lauren Taylor

IF YOU’VE EVER SIGNED UP FOR A CELLPHONE PLAN, A STREAMING SERVICE, OR CREATED AN ACCOUNT ON A WEBSITE, CHANCES ARE, YOU’VE SIGNED WAY YOUR RIGHT TO SUE THAT COMPANY FOR WRONGDOING. MOST OF US DON’T EVEN REALIZE IT. BUT THIS WEEK, THAT REALITY TOOK CENTER STAGE IN A CASE INVOLVING A LAWSUIT AGAINST DISNEY.

JEFFERY PICCOLO, FILED A WRONGFUL DEATH LAWSUIT AGAINST DISNEY. HE CLAIMS HIS WIFE DIED FROM AN ALLERGIC REACTION AFTER DINING AT A DISNEY SPRINGS RESTAURANT.

DISNEY DENIED ANY WRONGDOING. THE COMPANY ARGUED THAT PICCOLO HAD TWICE WAIVED HIS RIGHT TO SUE. ONCE, WHEN HE SIGNED UP FOR DISNEY PLUS, AND AGAIN WHEN HE USED DISNEY’S WEBSITE TO PURCHASE PARK TICKETS. BURIED DEEP IN THE FINE PRINT OF THE TERMS AND CONDITIONS WAS A CLAUSE AGREEING TO RESOLVE DISPUTES THROUGH ARBITRATION INSTEAD OF THE COURT SYSTEM.THE CASE GRABBED PUBLIC ATTENTION, AND DISNEY, FACING OUTCRY, CHANGED COURSE.

WE SIGN UP FOR SERVICES, CHECK THE BOX THAT WE AGREE TO THE TERMS , BUT HIDDEN IN THIS ARGUMENTS ARE ARBITRATION CLAUSES. THAT MEANS IF SOMETHING GOES WRONG, DISPUTES ARE HANDLED PRIVATELY, OUTSIDE OF THE PUBLIC COURT SYSTEM.

MOST U.S. CONSUMERS ARE SUBJECT TO ARBITRATION CLAUSES, OFTEN WITHOUT KNOWING IT. IN 2018, MORE THAN 826 MILLION SUCH CLAUSES WERE IN EFFECT, AND THAT NUMBER INCREASED WITH THE RISE OF STREAMING SERVICES. FROM BANKING SCANDALS TO WORKPLACE DISCRIMINATION CLAIMS, THESE AGREEMENTS MAKE IT HARDER TO CHALLENGE CORPORATIONS IN A PUBLIC COURTROOM.

AS WE CONTINUE TO SIGN UP FOR MORE SERVICE AND CLICK THOSE “AGREE” BUTTONS, IT’S IMPORTANT TO BE AWARE TO WHAT WE’RE AGREEING TO.

WE’LL CONTINUE TO FOLLOW THIS CASE- AND YOU CAN TOO. DOWNLOAD THE STRAIGHT ARROW NEWS APP – AND SIGN UP FOR UPDATES SO YOU NEVER MISS A STORY