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Class-Action Lawsuit Against SoulCycle Pedals Forward
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Photo courtesy of SoulCycle

Summary: The multi-million dollar fitness chain SoulCycle lost its request to throw out a class-action lawsuit.

This week a California judge allowed class-action lawsuit against SoulCycle to spin ahead. The lawsuit accused the high-priced fitness chain of stealing from customers through its class passes with short expiration periods. SoulCycle tried to get the suit thrown out, but the court ruled against them.

  
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SoulCycle offers high-energy spinning classes at premium prices. Many who swear by its effects have been likened to cult members, and the Netflix hit “The Unbreakable Kimmy Schmidt” did a parody of how obsessive the chain’s spinners are with the brand.

giphy

The Unbreakable Kimmy Schmidt tries spinning. Gif courtesy of Giphy.

And apparently, its customers don’t like to not get their spin on. Lead plaintiff Rachel Cody filed the suit against SoulCycle in August 2015, Business Insider reports. She claimed her $30 one-class certificate expired before she was able to use it. The pass expired in 30 days, but because of SoulCycle’s popularity, it was difficult to get into classes at peak times. Additionally, SoulCycle doesn’t offer refunds for unused passes.

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The plaintiff’s lawyers point out the expiration dates have contributed easy money to the company’s $25 million annual profits.

“SoulCycle’s deliberate use of expiration dates harms and deceives customers throughout the United States,” Daniel Hipskind, one of the plaintiff’s lawyers said in a press release. “SoulCycle’s expiration dates rob customers of their money, creating illegal profits for SoulCycle.”



Business Insider reports that the lawsuit hopes to refund customers whose passes expired.

The lawsuit alleges that SoulCycle’s expiration policy is a direct violation of the Federal CARD (Credit Card Accountability Responsibility and Disclosure) Act. The act prohibits expiration periods of less than five years. Furthermore, California has its own law, the California Gift Certificate Law, that prohibits expiration dates on gift cards in general.

SoulCycle filed for an initial public offering in July.

Source: Jezebel

Source: Business Insider

Photo courtesy of SoulCycle



 

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