Peloton is facing a potential class-action lawsuit filed on behalf of consumers who were outraged by the company’s decision to reduce the amount of fitness programs available while still marketing its service as having a “ever-growing” library of classes.
The action follows another legal spat for Peloton, which was sued in 2019 by the National Music Publishers Association for allegedly failing to license music played during its fitness courses. It is reported that it exploited songs by artists such as Rihanna and Lady Gaga without paying for the rights.
That music case was ultimately resolved, but in the meanwhile, Peloton deleted all courses that used copyright-infringing tunes, which accounted for almost half of its repertoire. Some consumers were irritated since they had purchased their Pelotons based on the company’s marketing promises that its class offerings were “ever-growing.” In his 40-page opinion, U.S. District Judge Lewis Liman said that Peloton’s marketing language “indicated to the market that there would be value associated with the items, resulting in an elevated price when that value was not really present.”
Peloton refused to comment, telling CBS MoneyWatch in an email that company “cannot comment on pending litigation.”
Peloton has struggled with demand as pandemic precautions have worn off and individuals feel more at ease returning to the gym and training inside with others. In February, the business’s co-founder and previous CEO, John Foley, stepped down, and the company announced the layoff of 2,800 employees throughout its worldwide operations.