Peloton faces a proposed class-action lawsuit filed on behalf of customers who were angered by the company’s decision to reduce its number of exercise classes while continuing to market its service as a library of “ever growing” classes.
The lawsuit stems from another legal fight by Peloton, when it was sued in 2019 by the National Music Publishers Association for its alleged lack of licensing of the music played during its exercise classes. He allegedly used songs by musicians such as Rihanna and Lady Gaga without paying for royalties.
That music lawsuit was eventually settled, but Peloton, in the meantime, removed all classes that included the infringing songs, which made up about half of its library. That angered some customers who had bought their Pelotons on the company’s marketing claims that its class offerings are “growing.”
U.S. District Judge Lewis Liman wrote in his 40-page decision that Peloton’s marketing language “indicated to the market that there would be value associated with the products that would result in an increase in price when that value was not it really was.”
Peloton declined to comment, noting in an email to CBS MoneyWatch that it “cannot comment on active litigation.”
Peloton has struggled with demand as pandemic measures have eased and people feel more comfortable returning to the gym and exercising indoors with others. The company’s co-founder and former CEO John Foley he left office in Februarywhile the company announced that it would eliminate 2,800 workers in its global operations.
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