Home exercise giant Peloton must face a lawsuit by customers who say the company misled them when it promoted its “ever-growing” library of on-demand fitness classes despite knowing that it had cut more than half its those classes due to alleged copyright violations.
U.S. District Judge Lewis Jeffrey Liman, a federal judge in the Southern District of New York, denied Peloton’s request Thursday to dismiss a class action led by plaintiffs Eric Passman and Ishmael Alvarado. The lawsuit accuses the fitness company of deceptive practices and false advertising, alleging that it deprived the plaintiffs of “the benefit of the bargain” by charging full price for an “ever-growing” and “unlimited” catalogue of classes despite knowing that it was about to drop numerous classes from its catalogue.
Passman and Alvarado, suing under a New York consumer protection law, allege that from April 2018 to March 2019, Peloton continued to promote its “growing” catalogue of classes — and charge customers a premium — despite knowing that the opposite was true, and that in fact the number of classes was about to be cut in half due to pending copyright infringement claims.
In April 2018, Peloton received a cease and desist letter from the National Music Publishers’ Association warning the company that it was improperly using copyrighted music in its classes. A lawsuit was subsequently filed in March 2019. Despite denying the allegations Peloton that month purged every class that contained an...
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