Lindsey Blackburn v. ClassPass USA LLC

District Court, N.D. California·Decided April 9, 2026·No. 3:25-cv-06109·Unknown

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 LINDSEY BLACKBURN, Case No. 25-cv-06109-WHO

8 Plaintiff, ORDER GRANTING MOTION TO 9 v. COMPEL ARBITRATION AND STAY THE CASE 10 CLASSPASS USA LLC, Re: Dkt. No. 28 Defendant. 11

12 Plaintiff Lindsey Blackburn (“Blackburn”) brings this action on behalf of a putative 13 nationwide class and California subclass of ClassPass subscribers. She alleges that defendant 14 ClassPass, USA LLC (“ClassPass”), has engaged in unlawful practices in violation of federal and 15 state laws because of its practice of issuing “Credits” that expire before a member can use them. 16 ClassPass moves to stay the case pending arbitration because Blackburn has agreed to arbitrate 17 through either or both of her 2019 and 2023 acknowledgments of ClassPass’s Terms of Use. 18 Blackburn contends that she did not (1) receive reasonable notice of the contents of the Terms of 19 Use and (2) manifest assent to the Terms of Use. The parties do not dispute that the arbitration 20 agreement would encompass Blackburn’s claims if it is valid. Because I conclude that ClassPass 21 provided reasonably conspicuous notice of its Terms of Use and that Blackburn manifested assent 22 to the Terms of Use, the arbitration agreement at issue is valid. ClassPass’s Motion to Stay 23 Pending Arbitration is GRANTED. 24 BACKGROUND 25 A. Factual Background 26 ClassPass is a Virginia-incorporated, New York-based company that operates throughout 27 the United States. Complaint (“Compl.”) [Dkt. No. 1] ¶ 12. It primarily sells access to discreet 1 food “experiences.” Compl. ¶ 1. ClassPass does not offer these experiences itself, but rather 2 partners with gyms, spas, restaurants, etc. to make these experiences available to its users. 3 ClassPass users purchase ClassPass “Credits” and use those Credits like tokens to trade for access 4 to the experiences. Id. Depending on the type of experience, differing amounts of Credits are 5 required. For example, a strength and conditioning exercise class at one facility may cost 5 6 Credits, while a 90-minute massage at another facility may cost 34 credits. Compl. ¶ 18, Fig. 3. 7 ClassPass users can buy standalone Credits as well as monthly plans, where they receive a 8 certain number of Credits per month (45 Credits per month is typical). Compl. ¶ 19. Blackburn 9 alleges that ClassPass designs the Credit receipt program so that (1) if a user purchases additional 10 Credits above the monthly allotment, any leftover Credits do not roll over to the next month and 11 (2) after two months, when a new month of membership begins, any leftover Credits above a 12 user’s set monthly amount automatically expire. Compl. ¶¶ 19–21. Additionally, when users 13 cancel their membership, their Credits expire. Compl. ¶ 22. Users are not provided with a means 14 to use their remaining Credits, nor are they refunded the cost of the Credits once the Credits 15 expire. 16 Many users have complained about these policies, expressing frustration with purchasing 17 Credits, being unable to use them before they expire for any number of personal reasons, and not 18 getting the benefit of their purchase. Compl. ¶¶ 23–24. Customers have described ClassPass’s 19 Credit allocation system as a “scam.” Id. 20 1. Blackburn’s Experiences With ClassPass 21 Blackburn initially became a ClassPass member in 2019 and finally ended her subscription 22 on May 25, 2024. She first signed up for a ClassPass account using her Facebook credentials on 23 May 23, 2019. Dkt. No. 28 at 7; Dkt. No. 31 at 8–9.1 Six days after signing up for an account, she 24 used ClassPass’s “refer-a-friend” program to secure a free trial membership. Through the refer-a- 25 friend program, she received 35 free ClassPass credits. Exh. F, Dkt. No. 28-1 at 18; Dkt. No. 31 at 26 1 At this stage in the litigation, although I consider all allegations in the complaint to be true, I also 27 must “consider all relevant, admissible evidence submitted by the parties,” in “reviewing [a] 1 5. After her free membership concluded, Blackburn continued to use ClassPass for eight months 2 during which she paid an ongoing monthly membership fee to purchase Credits. She discontinued 3 her monthly membership in early 2020. 4 Blackburn reactivated her membership on December 26, 2023, when she received a 43- 5 Credit one-month trial to rejoin ClassPass. Exh. H, Dkt. No. 28-1 at 22. As a part of her sign-up 6 process to reactivate her membership, ClassPass advertised that the accounts had “[m]ore 7 flexibility than ever before,” in part because there were “[n]o contracts or commitments— 8 Memberships are month-to-month and we make changing your plan easy.” Exh. G, Dkt. No. 28-1 9 at 20. At the end of her one-month free trial, Blackburn’s plan automatically renewed and 10 ClassPass charged her $89 for her monthly membership fee. Dkt. No. 28 at 12. She continued 11 with her monthly membership until May 26, 2024. Id. 12 Blackburn alleges that while she was a ClassPass member, she lost Credits that she had 13 purchased through her monthly membership because of ClassPass’s system of monthly Credit 14 expiration. Compl. ¶¶ 47–48. She ultimately ended her subscription due to frustration with 15 ClassPass’s Credit expiration policy. Compl. ¶ 48. In her complaint, she first alleges that 16 ClassPass’s Credits function as prepaid cards within the meaning of the Credit Card 17 Accountability Responsibility and Disclosure Act (the “CARD Act”) and the Electronic Funds 18 Transfer Act (the “EFTA”), which prohibit the use of pre-paid cards that expire within five years 19 of their issuance. In the alternative, she contends that each ClassPass Credit acts as a “gift 20 certificate” or “gift card” under the CARD Act and the EFTA. Compl. ¶¶ 31–42. Finally, 21 Blackburn asserts that ClassPass’s Credits meet the definition of “gift certificate” under 22 California’s Civil Code § 1749.5. 23 2. ClassPass Sign In Screens 24 25 26 27 1 Blackburn first signed up for a ClassPass account on May 23, 2019. Dkt. No. 28 at 3. 2 || While logged into her Facebook account on her mobile device, Blackburn navigated to a 3 ClassPass sign in screen and signed up for a ClassPass account using her Facebook credentials. 4 She was directed to do so via the following screen: 5 6 € Signup 7 . If you sign up through Facebook, you agree to the Terms of 9 Use and Privacy Notice. If you do not want to let other ClassPass users see your profile, sign up with your emai 1 0 instead of through Facebook, and uncheck the box. 11

13 14 Let other ClassPass users see my name, usermame, cit 15 and photo. | goto my privacy settings to hide my * proifle anytime. 16

«17

Z 18 19 By signing up you agree to our Terms of Use and Privacy Notice, 20 21 || (2019 Sign Up Screen”) Dkt. No. 28, Exhibit B. 22 The top of the page reads “Sign Up,” directly underneath which is a large blue clickable 23 button that reads “Continue with Facebook.” Below the “Continue with Facebook” button, a short 24 || paragraph of text in smaller font reads: “If you sign up through Facebook, you agree to the Terms 25 of Use and Privacy Notice. If you do not want to let other ClassPass users see your profile, sign 26 || up with your email instead of through Facebook, and uncheck the box [below].” Jd. Both Terms 27 || of Use and Privacy Notice were written in bold, blue, and underlined font, signifying the 28 existence of a hyperlink. After presented with the opportunity to “Continue with Facebook,”

] Blackburn was presented with additional screens to create her account, explaining that she would 2 || get her first two weeks free once she “activate[d]” her membership, and requiring her to verify her 3 || phone number to finish setting up her account. Exhs. C, D, E, Dkt. No. 28-1 at 11-16.

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