Sunday, October 20, 2024

Better Read the Terms and Conditions

 Dr. Kanokporn Tangsuan died of an allergic reaction after consuming food at a restaurant in Disney World on October 5, 2023. She died even despite the server's assurance that her allergies could be accommodated. Her surviving husband, Jeffrey Piccolo, sued Disney parks, but Disney argued the lawsuit should be dismissed and resolved through arbitration since the couple agreed to the terms and conditions of the Disney+ service and the Walt Disney Parks website. Disney, facing immense media and public backlash, eventually dropped the effort to dismiss the lawsuit. 

Similarly, a couple that was involved in a major car accident while in an Uber ride in March 2022 sued Uber for damages, but Uber argued that the couple had agreed to arbitration by accepting the terms and conditions of both the Uber Eats and Uber Rides apps. The plaintiffs argued that it was their young daughter who had clicked "agree" to the terms and conditions, but an appellate court still sided with Uber and ruled that the plaintiffs cannot take Uber to jury trial. 

Not thoroughly reading through the terms and conditions for every account you open, app you download, or website you visit is a clear example of rational ignorance. There are simply high marginal costs to reading the super long, complex, and obscure terms and conditions for minimal marginal benefit in return. However, I also agree with the general public backlash that it is outrageous for companies to take advantage of this rational ignorance.



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