A class-action lawsuit filed last week alleges the fitness and beauty subscription service ClassPass Inc. falsely claimed partnerships with unaffiliated businesses as part of its efforts to attract more subscribers.
The lawsuit, which is led by a nail salon based in New Jersey, says ClassPass’ alleged actions were first discovered when a customer attempted to follow through on a booking scheduled at the salon via ClassPass. It was then that the salon “discovered that ClassPass had listed [its] business and service offerings as part of the ClassPass Partner Network, without [the salon’s] knowledge or consent.”
Attorneys found “countless false listings of businesses that never partnered” with ClassPass when they began looking into the allegations, according to the court documents, which were filed October 22 in the U.S. District Court for the Southern District of New York.
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ClassPass advertises itself as a “monthly subscription service providing access to the world’s largest network of boutique fitness studios and gyms.” The service, which was founded in 2013, says on its website it operates in 30 countries with more than 30,000 studio and gym partners and an estimated 5,000 beauty partners. The company’s founder and CEO are listed as co-defendants in the case.
According to the lawsuit, ClassPass allegedly “engaged in a course of conduct with respect to the advertising of its ClassPass Partner Network that unfairly and falsely affiliates” ClassPass with those behind the suit. The result of those alleged actions “diverts potential customers into purchasing ClassPass memberships instead of directly purchasing services” offered by the businesses filing the lawsuit, the suit says.
The lawsuit estimates “thousands of businesses” have been falsely listed as partners within the ClassPass Partner Network, with “dozens” of unsubstantiated partnerships marketed “in all major markets, and even smaller locations.”
In the main example included in the lawsuit, a customer said she paid for a manicure and pedicure at one of the nail salon’s locations through ClassPass in early September. The customer was “confused” when asked for payment in the salon after she had already paid for the services through ClassPass. The court documents include a screenshot of a complaint the customer later wrote about her experience, in which she says she was “scammed out of $70.”
The customer’s review begins by saying she “would not even give one star, if possible” while rating ClassPass. “Despite booking and pre-paying through class pass, Leeah Nails said that the service had not been prepaid and charged me $70 out of pocket. Also Leeah Nails says that it has no relationship or partnership with class pass; the owner had never even heard of class pass.”
The number of businesses similarly affected is “so numerous” as to necessitate a class-action lawsuit, the court documents say.
Newsweek reached out to ClassPass for comment but did not hear back before publication.
