SoulCycle is facing a class action lawsuit for selling classes that expire after a 30-day period.
A judge on Tuesday ruled that a class action lawsuit could be filed after the company attempted to have the case dismissed in a California court.
SoulCycle offers classes across the country and class costs vary by region and studio. Participants can buy classes that range from one class to 50.
The company bases the expiration date on the number of classes purchased. One class expires after 30 days and 50 classes expire after 12 months.
SoulCycle doesn’t offer a refund for unused classes, instead pocking any money from unused classes.
A judge ruled that the class passes were gift cards and thus subject to two existing laws.
The federal CARD Act (Credit Card Accountability Responsibility and Disclosure Act) prohibits expiration periods of less than five years and the California Gift Certificate Law prohibits expiration periods on gift cards such as the ones SoulCycle offers.
“SoulCycle’s deliberate use of expiration dates harms thousands of consumers throughout the United States,” said attorney Daniel Hipskind. “SoulCycle’s illegal expiration dates contributed to SoulCycle earning over $25 million in profit this past year.”
SoulCycle filed for an initial public offering in July.