A recent lawsuit has emerged, accusing the WWE of misleading fans regarding their streaming access to premium live events (PLEs) on ESPN. The lawsuit, filed in U.S. District Court in Connecticut, highlights a deceptive marketing strategy employed by both WWE and ESPN.
The crux of the issue lies in the fact that some fans, who already had access to ESPN channels through cable or other providers, were still required to pay an additional monthly fee to watch WWE events. This contradicts the initial marketing communications from both companies, which suggested that all existing ESPN subscribers would have access to the WWE PLEs. The plaintiffs argue that this misleading information has caused financial strain for many fans.
The lawsuit seeks to represent U.S. customers who paid for ESPN's direct-to-consumer streaming service in the lead-up to Wrestlepalooza on September 20, while already being an ESPN subscriber through traditional means. It specifically targets WWE, excluding ESPN and its parent company, Disney, to avoid arbitration and class action waiver provisions in Disney's subscriber agreement.
The plaintiffs are seeking more than $5 million in damages. If successful, eligible consumers might receive a refund or partial reimbursement. The case highlights a potential bait-and-switch tactic, where WWE and ESPN lured customers into purchasing ESPN's new direct-to-consumer product, despite initial promises of broader access.
The lawsuit also points to reporting and consumer frustration in the days leading up to Wrestlepalooza. Michael Diesa and Rebecca Toback, the plaintiffs, personally subscribed to the service during the initial launch while already paying for ESPN through other providers. Diesa, an Xfinity cable subscriber, upgraded his Disney+ plan to include ESPN Unlimited, while Toback, a YouTube TV subscriber, signed up for the service on the day of Wrestlepalooza.
The proposed class would represent customers who paid for ESPN Unlimited between August 6 and September 20 while also being subscribers of services that get traditional ESPN channels. This excludes customers of DirecTV, Fubo TV, Hulu + Live TV, Spectrum, or Verizon FIOS, as these services allowed their customers to authenticate and watch the PLEs by September 20.
Despite the relatively small fees involved, the potential exposure and size of the class could be significant. Reporting estimates suggest that WWE content drove approximately 95,000 to 125,000 signups during the proposed class period. The lawsuit has not yet received a response from WWE, and early disputes may revolve around the responsibility of WWE for ESPN's marketing decisions and the deceptive nature of their statements.
