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

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