Spartan Race Class Action Lawsuit Calls Insurance ‘Worthless’

A class action lawsuit has been filed against obstacle race organizer Spartan Race Inc. for establishing a “worthless” insurance scheme.

Plaintiff Aaron Fruitstone says Spartan Race requires each participant to make an extra payment of $14 which goes towards insurance. 

Spartan states that it purchases participant accident medical insurance coverage that would provide for “limited coverage” if a participant is injured while racing at an event, the plaintiff claims.

The problem is that the purchased insurance is secondary, which means that the racers have to go through their own insurance first to seek coverage for medical expenses, the plaintiff says.

The price to register for an obstacle race with Spartan ranges around $100 and participants are charged other fees, such as for parking services, bag check, and a merchandise discount, according to the plaintiff. In addition, there is reportedly a mandatory “Racer Insurance Fee.”

The marketing and charging of the mandatory $14 “Racer Insurance Fee” is likely to mislead any reasonable consumer as Spartan does not disclose that it receives a massive profit from this fee, states the Spartan Race class action lawsuit.

By charging the mandatory “Racer Insurance Fee,” Spartan Race has been able to represent that its prices to register for races are cheaper than the competition, says Fruitstone.

Fruitstone claims that Spartan Race has created a secret revenue stream through an insurance scheme, bilking millions of dollars from its consumers and violating Florida and common law. The plaintiff notes that Spartan Race has engaged in a “pattern of unlawful profiteering, deceit, and self dealing.”

“Contrary to the representations Spartan makes to participants and consumers, the amount that Spartan pays for the accidental medical insurance coverage for the participant is significantly less than the amount it charges,” the plaintiff alleges.

The Spartan Race class action states that Spartan pockets the overcharge as profit and hides that fact from racers. In fact, Spartan claims in their marketing materials that the “Racer Insurance Fee” is passed through to a third-party insurer, states the plaintiff.

“This false impression is objectively likely to mislead reasonable consumers because in fact, the portion of the cost kept by Spartan is a hidden profit center for Spartan, who never discloses that it profits from the ‘Racer Insurance Fee,'” claims the Spartan Race class action lawsuit.

The Spartan class action argues that Spartan has violated the Florida Deceptive and Unfair Trade Practices Act, which aims to protect the public from anyone engaging in unfair methods of competition.

The plaintiff would like to represent a nationwide Class which would consist of “All individuals in the United States who, during the applicable limitations period, paid the ‘Racer Insurance Fee’ in connection with any race organized by Spartan.”

In addition, the plaintiff seeks to represent a Florida subclass would be made up of “All individuals in the state of Florida who, during the applicable limitations period, paid the ‘Racer Insurance Fee’ in connection with any race organized by Spartan.”

What do you think of Spartan Race charging a “Racer Insurance Fee”? Leave a message in the comments section below.

The plaintiff is represented by Adam M. Moskowitz, Howard M. Bushman, Joseph M. Kaye, and Barbara C. Lewis of the Moskowitz Law Firm, Paul M. Scott, Bradley J. Watkins, and Steven G. Blackerby of Brown Readdick Bumgartner Carter Strickland & Watkins LLP and Andrew S. Friedman of Bonnett Fairborn Friedman & Balint PC.

The Spartan Race Insurance Class Action Lawsuit is Aaron Fruitsone v. Spartan Race Inc., Case No. 1:20-cv-20836, in the U.S. District Court for the Southern District of Florida.

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