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.
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.
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.
