Peloton Interactive Inc. is facing a proposed class action lawsuit in New York over its library of on-demand programs. According to the lawsuit, Peloton advertised to its potential purchasers continued growth of its program options but in March 2019, Peloton removed an estimated 12,000 on-demand programs. This was done after a lawsuit stemming from music publishers for non-licensed streaming rights in Peloton’s on-demand programming.
The lawsuit claims that Peloton knew of the potential removal of programs due to this lawsuit and continued marketing this growing programming. Additionally, they kept charging full price for the bicycle units and monthly subscription plans that contained some of the copyrighted music in the publishing lawsuit. A judge in New York stated that from April 2018 to March 2019 some customers could argue they overpaid Peloton because of their failure to disclose this removal potential and still charging full price.
The licensing lawsuit filed by the National Music Publishers’ Association and 14 of its members was settled in February 2020.
The case is Passman et al v. Peloton Interactive Inc., U.S. District court, Southern District of New York, Case No. 19-11711.
This blog is intended to provide information to the general public and to practitioners about developments that may impact Oregon class actions.