ClassPass Class Action Lawsuit Overview:
- Who: A New Jersey nail salon has served ClassPass with a class action lawsuit.
- Why: The salon says the online booking company lists “countless” small businesses on its platform, despite having no relationship with them.
- Where: The salon is looking to represent a nationwide group of small businesses.
The online booking platform ClassPass lists thousands of small businesses that it has no relationship with, driving down prices and causing confusion in stores, a new nationwide class action lawsuit alleges.
New Jersey nail salon Leeah Nails filed the class action complaint against ClassPass Oct. 22, alleging the billion-dollar-valued company has violated multiple state and federal business laws.
According to the complaint, Leeah Nails and its attorneys have discovered that ClassPass lists “thousands” of small businesses nationwide on its platform, falsely representing that it has a relationship with them.
ClassPass Lists Businesses It Has No Relationship With Whatsoever, Class Action Alleges
Leeah Nails discovered ClassPass had created a profile for it on the platform on Sept. 1, 2021, when a customer came in for services she told the business she had already paid for through ClassPass.
“Leeah Nails did not have any relationship with ClassPass and was confused as to how this customer could have purportedly booked this service,” the class action lawsuit says.
“Leeah Nails apologized to the customer for the confusion and charged her the regular price of service. The customer was upset but paid in full.”
Afterwards, the customer left a poor review on the Internet of her experience with ClassPass and the salon.
As a result, the owners of Leeah Nails visited the ClassPass website to see what was being advertised. It discovered a listing for its salon, with a generic description and list of the nail salon’s various services, with an option to click “See Pricing” next to each service.
“When clicking on ‘See Pricing,’ next to the appointment, the website redirects not to Leeah Nails’s price list, but instead to the ClassPass membership sign-up page,” the class action lawsuit says.
After investigating further, the salon and its attorneys have come to believe that ClassPass falsely lists thousands of businesses that are not actually partnered or affiliated with ClassPass on its marketplace as part of the ClassPass Partner Network, the lawsuit says.
“Plaintiff Leeah Nails is concerned for injuries to its reputation,” the class action states.
“Leeah Nails also fears that it will be forced to use ClassPass to survive to attract customers, and as a result, ClassPass will drive down its margins for services below sustainable rates.”
The nail salon is looking to represent any business that does not do business with ClassPass but nevertheless has a landing page on a ClassPass website, plus a New Jersey subclass.
It is suing under unfair competition, false affiliation and false advertising in violation of the Lanham Act, and violations of New York and New Jersey business laws.
The lawsuit is seeking certification of the class action, damages and compensatory damages in excess of $5 million, fees, costs and a jury trial.
In other small business news, a Miami salon owner is not eligible for insurance payments after her business was disrupted due to the pandemic, a judge ruled in August.
Small business owners also recently lodged a class action against Quickbooks, alleging the accounting software company ramped up fees on certain transactions seemingly overnight.
Have you used ClassPass? Tell us about your experience in the comments!
The plaintiff is represented by Raphael Janove, Adam Pollock and Agatha M. Cole of Pollock Cohen LLP.
The ClassPass Small Businesses Class Action Lawsuit is Tipsy Nail Club, LLC, et al. v. ClassPass Inc, et al, Case No. 1:21-cv-08662 in the U.S. District Court Southern District of New York.
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7 thoughts onClassPass Dupes Businesses, Consumers With Fake Listings, Claims Class Action
How do we get involved in this lawsuit? My business experienced the same treatment in Hollywood CA.
I’m a classpass member and tried to use credits for a massage and when I got there, I didn’t see a business of any sort, no Yelp reviews, the online website and ig account had nothing. Clearly a fake business that cost me close to $40 in Uber rides to get to and from. I was credited back for the unused credits but how am I to be compensated for time and $ I spent getting to a nonexistent business in the middle of a dangerous neighborhood ? Classpass is refusing to help.
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Vise vapes needs to be investigated. I have over $300 pods that were burnt when purchased. Company was contacted and it’s gotten worse. I will keep pods in case they are needed. I’ve thrown away almost 50 already. Thank you! Dana Brouillette