ClassPass Lawsuit: Fitness Credits Expire Illegally, Users Claim

Case Overview: A class action lawsuit alleges ClassPass violates gift card laws by using credits that expire too quickly, depriving users of money they have already spent.

Consumers Affected: U.S. ClassPass users whose credits expired at month’s end or when memberships ended.

Court: U.S. District Court for the Northern District of California

ClassPass, the popular fitness and lifestyle booking app, tricks customers into buying credits that expire far too quickly in violation of federal and state gift card laws, a lawsuit filed by a California woman alleges.

Instead of letting customers pay in dollars, ClassPass requires purchases to be made with “Credits” that can be redeemed for gym classes, spa treatments, and other experiences. 

The lawsuit alleges these Credits function like prepaid cards or gift certificates, but unlike cash, and unlike what the law requires, they disappear after short expiration periods, depriving users of money they’ve already spent.

Lawsuit Argues Credits Function as Gift Cards, Not as Cash

Lindsey Blackburn, who filed the proposed class action lawsuit, joined ClassPass in 2018 and used it off and on until cancelling in May 2024. She claims her Credits regularly expired after 30 days, or 60 days if rolled over once, but never beyond that.

According to the complaint, Blackburn often found herself unable to use her purchased credits before they expired, leaving her frustrated and out of pocket. She says the experience eventually led her to stop her subscription entirely.

Users Claim They Lost Money on Unused Credits

ClassPass sells monthly membership tiers and one-off purchases in credits, each with a dollar value and redeemable for experiences priced on a sliding scale. But the lawsuit says the system is designed so unused credits vanish quickly, either at the end of the month, after a single rollover, or immediately upon cancelling membership.

There’s no option to transfer unused credits to another user or convert them back to cash. The complaint claims this structure takes advantage of busy customers who may not redeem credits quickly, generating “windfall profits” for ClassPass that consumer protection laws were created to prevent.

Federal law generally prohibits expiration dates of less than five years for prepaid cards and gift certificates, and California law goes further by banning expirations altogether.

Gift Card Laws Lead to Legal Challenges for Companies

This isn’t ClassPass’s first time in court. Earlier this year, a federal appeals court ruled in a user’s favor in another lawsuit over its auto-renewal practices, finding sign-up page language unclear.

Other legal fights over gift laws and companies allegedly using gift cards to rip consumers off are playing out elsewhere. Chipotle faces a lawsuit over meal vouchers replacing gift card refunds but expiring in 30 days. Google has been accused of profiting from unrefunded balances on gift cards used in scams.

In her lawsuit against ClassPass, Blackburn wants to represent a nationwide class of ClassPass users whose credits expired at month’s end or when memberships ended. 

She’s seeking damages, restitution, injunctive relief, and other remedies, essentially asking the court to make ClassPass stop using expiration dates she says break the law and to pay customers back for the credits they lost.

Case Details

• Lawsuit: Blackburn v. Classpass USA LLC
• Case Number: 3:25-cv-06109-WHO
• Court: U.S. District Court for the Northern District of California 

Plaintiffs' Attorney:

• Philip L. Fraietta and Julian C. Diamond (Bursor & Fisher, P.A.)

Have you had ClassPass credits expire? Share your experience with the company's credit system below.