It looks like Disney’s in a bit of trouble.
The Mickey Mouse House is currently in the middle of a legal battle with Redbox with the former being accused that it’s been misrepresenting its digital download to customers.
The actual court case isn’t all that new. The case began years ago when Redbox started dividing Disney’s “combo pack” to sell for themselves. The House of Mouse won the most recent ruling (h/t The Hollywood Reporter) when United States District Court Judge Dean Pregerson decided to side with Disney.
Redbox was then faced with an injunction, and the home media kiosk company was forced to stop the sales of Disney’s digital codes. However, while the Mickey Mouse House has won the case so far, Pregerson says that Redbox still has the grounds to go after the company under the claim of false advertising.
According to the Judge, while Redbox consumers don’t really encounter Disney’s Combo Pack packaging when the items are resold, those who purchase the code cannot really redeem their download codes without first viewing Disney’s redemption website terms. This includes terms that Disney actually owns the download codes and that the codes cannot be redeemed by those who purchase them as standalone.
"Disney argues that these representations cannot lead to lost sales for Redbox unless a consumer “determines that Redbox is engaged in unlawful conduct... and decides not to buy additional Codes from Redbox...," the judge explains. "That appears, however, to be precisely what Redbox alleges. Redbox has, therefore, alleged statutory standing under the Lanham Act.”
This case might seem a bit problematic knowing how Disney is preparing to release a few major films for download like Spider-Man: Far From Home.
Disney’s latest release, The Lion King, premieres tomorrow, July 19.