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A Colorado resident has filed a class action against ski resort operator Alterra for refusing to offer refunds on its “unlimited” season passes in the wake of COVID-19 closures.
Each season, Alterra Mountain Company and wholly owned subsidiary Ikon Pass Inc., market two types of season passes: the Ikon Pass and Ikon Base Pass. Each one grants varying degrees of access to ski lifts and other amenities at 15 resorts owned and operated by Alterra, as well as many others around the world.
Matt Simpson of Glenwood Springs says he purchased an Ikon Base Pass for the 2019-20 ski season. This promised him “unlimited/select access” to 12 ski resorts, five days of access at each of 19 other ski resorts, and a combined five days of access at six others, all “with no blackout dates,” his lawsuit states.
These passes for the current season were sold for $649 for adults, $499 for young adults, $159 or $259 for children, and $49 for children aged 4 and under.
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An expanded version called the Ikon Pass allowed “unlimited access” to 14 ski resorts, seven days of access each at 16 others, and a combined seven days of access at seven more, all “with no blackout dates.” This pass was sold for $949 for adults, $699 for young adults, $199 or $299 for children, and $49 for children aged 4 and under.
In addition to the 15 properties owned and operated by Alterra, its Ikon passes provide access to 38 other winter destinations in the Americas, Japan, Australia and New Zealand operated by Aspen Skiing Co., Boyne Resorts, POWDR, Jackson Hole Mountain Resort, Alta Ski Area, Snowbird, SkiBig3, Revelstoke Mountain Resort, Sugarbush Resort, Thredbo, Niseko United, Valle Nevado, and NZ Ski.
Because daily rates for ski and snowboard passes can add up quickly, those who plan to ski or snowboard often buy these season passes as a cost-saving measure. The sheer length of the usual ski season generally makes them a sound investment, with some resorts — such as Squaw Valley and Mammoth Mountain in California — open through July or August each year. Alterra touts this benefit in its own marketing materials.
On March 14, because of COVID-19 restrictions, Alterra’s CEO announced the company would “suspend operations at our 15 North American ski resorts, starting the morning of Sunday, March 15, until further notice. All lift operations, food and beverage, retail and rental services will be closed until further notice.” As a result, more than one-third of the usual ski season was lost, Simpson argues.
As part of its resort closures, Alterra laid off most of its resort employees, the lawsuit reports. But despite eliminating a large percentage of its operating costs with this measure, the company has refused to refund any portion of its season pass fees.
Instead of issuing refunds, the lawsuit notes, Alterra offered to double its “renewal discount” for 2020-21 passes. This represents negligible savings of $50 for next season’s Ikon Base Passes or $100 for the Ikon Passes — if purchased by May 27.
“Thus, to get the alleged ‘benefit’ of the $100 discount for the Passes, Plaintiff and the Class Members must spend more money to renew a pass that they may neither want nor use,” the lawsuit maintains. “Absent spending more money to purchase a 2020-21 pass, Plaintiff and Class Members receive no ‘benefit’ whatsoever.”
Simpson is proposing a national Class of plaintiffs who purchased an Ikon pass for the 2019-20 season. On their behalf, he is claiming breach of contract, breach of express warranty, negligent misrepresentation, unjust enrichment and conversion.
He also claims Alterra’s actions violate Colorado’s Consumer Protection Act because they “recklessly disregarded Plaintiff’s and Class Members’ rights” by accepting their payments in full for the passes but refusing to refund them after shutting off access to the amenities they promised.
“Defendants’ deceptive trade practices significantly impact the public because Defendants own and operate at least 15 North American ski resorts, market the Passes as providing access to ‘38 global winter destinations’ and, on information and belief, sell a large number of ski passes to consumers located in Colorado and every other state,” the lawsuit argues.
Simpson is demanding a jury trial in hopes of winning compensatory damages, restitution, court costs and “all other forms of equitable monetary relief.”
For a guide to legal issues arising from the coronavirus pandemic, click here.
The plaintiff is represented by Daniel E. Gustafson, Daniel C. Hedlund, Joshua J. Rissman and Mickey L. Stevens, all of Gustafson Gluek PLLC.
The Alterra Ski Pass Class Action Lawsuit is Matt Simpson, et al. v. Alterra Mountain Co. and Ikon Pass Inc., Case No. 1:20-cv-01691, in the U.S. District Court for the District of Colorado.
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