Disney Shells Out MILLIONS to Settle Annual Pass Lawsuit

During the height of the COVID-19 pandemic, the Disneyland Resort in Anaheim, California, was closed for more than a year. During that year, Disneyland Annual Passholders were informed that Disney was “sunsetting” its Annual Pass Program. The program would be announced at a later date. Disneyland reopened in April 2021 — after closing in March 2020 — and there were no Annual Passes. A new program was not announced until the summer of 2021 — that was the Magic Key Pass Program.

Disneyland’s Magic Key program was very similar to its Annual Pass program, but was adapted to meet the new theme park reservation requirement. The highest Magic Key available was the Dream Key, which cost $1,399. For that price, guests would have no blackout dates and would be able to hold six park reservations at one time.

Unfortunately, Magic Key Holders quickly learned that “no blackout dates” did not mean that they would be able to visit whenever they wanted. There are only a certain amount of Magic Key Holder reservations available per day, and once they are gone, Magic Key Holders are out of luck. Those who purchased a Disneyland Magic Key found themselves unable to make reservations for weeks at a time. However, there were PLENTY of reservations available for those who purchased regular park tickets.

Eventually, one Magic Key Holder had enough. In November 2021, just three months after Magic Keys went on sale, Janale Nielsen filed a class-action lawsuit on behalf of all Magic Key Holders. Janale said that Disney engaged in deceptive practices by claiming that there were no blackout dates. Disney then created artificial blackout dates by limiting the number of Magic Key reservations that were available.

Disney attempted to get the lawsuit thrown out, but they were unsuccessful. Just over a year and a half after the lawsuit was filed, Disney finally came to a settlement agreement instead of taking its chances in court. Now we know what the terms of that settlement are.

Ms. Neilsen originally filed the lawsuit for $5 million, and any Magic Key Holder was eligible to join. However, Disney has agreed to pay out a whopping $9.5 million. With all the Magic Key Holders involved, that will result in payments of approximately $67.41. An email will be sent to those Magic Key Holders who are eligible for the settlement. The next step is for a judge to read the terms of the settlement and approve it.

Disneyland officials said that they were “satisfied that this matter has been resolved.”

In the almost two years since the lawsuit was filed, Disney has done away with its Dream Key. The top-tier Magic Key is now called the Inspire Key and will set guests back $1,599. Disney has also changed the terms and conditions of purchasing its Magic Key. Magic Key Holders agree that they will not file a lawsuit against Disney, and will instead deal with any issue in mediation.

Theme park reservations are still required to visit Disneyland Park and Disney California Adventure, but most Magic Key Holders do not have an issue making reservations unless it is a very bust time of year, like a holiday. Like the Dream Key, the Inspire Key allows guests to hold six reservations at one time.