SoulCycle Lawsuit To Move Forward, Motion To Dismiss Denied
Jan 14, 2016 04:27 AM EST
SoulCycle is alleged of violating the law by imposing a 30-day expiration date on some of their class passes. A lawsuit has been filed and a judge ruled on Tuesday that the case will move forward. The company motioned to dismiss the case but it was denied.
In a report by CNN, the spin club offers classes in different studios across the United States and the cost per class varies by region and studio. These classes are bought in packages ranging from one class up to 50 classes. It has been found out that the expiration date for classes varies such as when one is enrolled for one class, expires after 30 days. When one enrolls for fifty classes, the pass expires after 12 months without a refund for unused classes.
The judge rules that the class passes are gift cards, so it is subjected under two laws, the federal CARD Act or the Credit Card Accountability Responsibility and Disclosure Act and the California Gift Certificate Law, Jezebel reported.
The CARD Act prohibits expiration periods of less than five years while the California Gift Certificate Law prohibits expiration on gift cards.
The lawsuit was filed by lead plaintiff Rachel Cody claiming that her $30 single-class certificate expired before she was able to use it. The suit was filed back in August 2015.
Attorney Daniel Hipskind said in a statement that the SoulCycle's use of expiration dates harms thousands of consumers throughout the U.S. noting that the illegal doing of the company has contributed to the company's earning of over $25 million last year.
This is not the first lawsuit that SoulCycle has faced. Examiner reported that in 2013, a former employee of the company filed a class action claiming that the company violated wage laws. They reportedly failed to pay instructors for the extra work such as marketing, communicating with clients and attending corporate training programs.
SoulCycle has not commented on the issue yet as it is their policy to remain silent with regards to the pending litigation.