SoulCycle is going to have to do some court-mandated soul searching.
A judge ruled Tuesday that a class action lawsuit could be brought against the cult-favorite spin club that urges riders to "find your soul." The suit alleges that SoulCycle is violating the law by imposing a 30-day expiration date on some of its class passes.
SoulCycle attempted to have the case dismissed in a California court, but was unsuccessful.
The spin company offers classes in studios across the country and class costs vary by region and studio. The classes are bought in packages ranging from one class to 50.
The expiration date varies based on the number of classes purchased. A one class pass expires after 30 days, fifty classes expire after 12 months.
SoulCycle doesn't offer a refund for unused classes -- it just keeps the money.
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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."
This lawsuit comes as SoulCycle launches a series of nationwide pop-up workout sessions and prepares to go public. The company filed for an initial public offering in July.
