Fabletics Class Action Lawsuit Filed Over Allegedly Deceptive VIP Membership Program

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Fabletics faces a proposed class action lawsuit centered on its VIP membership program, including allegations about deceptive pricing, hidden auto-renewal terms and store credit that illegally expires.

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The 52-page lawsuit was filed by 11 consumers who paid Fabletics’ $59.95 monthly VIP membership fee in exchange for promotional member credit each month, which can purportedly be used to buy any single item or two-piece outfit from the sportswear retailer for up to $100. The complaint says VIP members also receive 20-50 percent off Fabletics’ retail prices.

According to the complaint, however, the $100 value of promotional member credit is deceptive since virtually no items available at the VIP membership pricing level come close to costing $100.

“In fact, most items [the defendant] sells do not exceed the $59.95 monthly membership fee even before the 20-50% discount is applied,” the Fabletics lawsuit asserts.

The plaintiffs claim they reasonably believed the VIP membership program was a good deal since Fabletics represented that they would receive $100 in purchasing value for a $59.95 fee.

Per the case, the consumers did not realize until after they enrolled in the program that it was “next to impossible” to obtain items close to $100 in value, as very few products were actually priced that high.

The suit further accuses Fabletics of violating California law by failing to clearly and conspicuously disclose its VIP membership automatic renewal terms to consumers before they complete the enrollment process. Specifically, the lawsuit contends, the defendant fails to adequately inform customers that the membership will automatically renew and charge their stored payment method each month. Fabletics also hides information about its cancellation policy, the suit alleges.

“[T]o capture more revenue per transaction, Defendant designed its order processes to present the terms of the VIP Membership Program in an intentionally inconspicuous manner,” the case says.

Finally, the lawsuit alleges Fabletics has run afoul of the California Gift Certificate Statute, which makes it illegal for companies to sell gift certificates with an expiration date. The filing argues that the retailer’s $100 promotional membership credit—which includes a $59.95 monthly membership fee and an extra $40.05 in purchasing value—is a gift certificate that illegally expires 12 months after issuance.

The lawsuit looks to represent all United States residents who, within the applicable statutory period, purchased a Fabletics VIP membership.

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