Fabletics VIP Subscription Lawsuit: A $100 Promise or a "Sham"?

Case Overview: A class action lawsuit alleges Fabletics deceives customers into its VIP Membership Program with false promises of $100 credits and engages in unauthorized renewals and expiring credit practices.

Consumers Affected: U.S. consumers who purchased a Fabletics VIP Membership Program membership.

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

Fabletics, the popular athleisure brand co-founded by actress Kate Hudson, is under legal fire over claims it dupes customers into a pricey subscription program by dangling the illusion of major savings. 

A proposed class action lawsuit says the company’s VIP Membership Program falsely advertises that members get $100 worth of gear each month for $59.95—when in reality, most items cost far less and offer little bang for the buck.

Even worse, the lawsuit alleges, those so-called “Promotional Member Credits” vanish if unused after a year, in apparent violation of California law governing gift certificates. And Fabletics allegedly renews memberships—and charges customers—without getting proper consent.

Fabletics Accused of Luring Customers with Illusory $100 Credits

The lawsuit was filed by eleven consumers across California and Florida. All were members of the VIP program and say they were drawn in by the promise of monthly credits that would stretch their dollars. According to the complaint, these plaintiffs believed they were getting $100 in spending power in exchange for their $59.95 monthly fee.

But once they joined, they discovered a catch: almost no items sold by Fabletics actually cost $100. In fact, most were priced under the $59.95 fee itself—even before the supposed 20-50% VIP discount was applied. In some cases, prices dropped to just $10 or $12 after becoming a member, making the credit feel more like smoke and mirrors than real savings.

Lawsuit Alleges Automatic Renewals and Expiring Credits Violate Law

The VIP Membership Program is pitched as a way for shoppers to get deep discounts on trendy activewear, according to the lawsuit. Customers are told they’ll receive one credit per month, redeemable for any item or two-piece outfit up to $100 in value. But plaintiffs say that value is largely illusory: very few items are actually priced that high, and credits can’t be combined to buy more expensive pieces.

Worse still, if a customer doesn’t use their credit within 12 months, it disappears entirely—no refund, no rollover, nothing. The lawsuit argues this violates California’s gift certificate law, which generally prohibits expiration dates on stored value. 

Adding to the issues, the complaint says Fabletics didn’t properly disclose that memberships would automatically renew each month, nor did it make clear that stored credit card info would be charged repeatedly—something the Automatic Renewal Law in California requires to be “clear and conspicuous.”

Subscription Model Marketing Faces Increasing Legal Challenges

Fabletics isn’t the only subscription-based company in hot water. Amazon is facing an FTC lawsuit over allegedly confusing Prime enrollment practices and hard-to-cancel memberships. 

SiriusXM has also been sued for issues with its subscription practices, allegedly tacking on a 21.4% “music royalty fee” without warning. Meanwhile, Audible is under legal scrutiny for letting purchased audiobook credits expire after a year—an issue similar to the Fabletics case.

In their lawsuit against Fabletics, the plaintiffs want to represent anyone in the US who purchased a Fabletics VIP Membership Program membership. 

Case Details

• Lawsuit: Bateman, et al. v. Fabletics, Inc.
• Case Number: 2:25-cv-02200-SVW-AJR
• Court: U.S. District Court for the Central District of California 

Plaintiffs' Attorneys

• Frank S. Hedin (Hedin LLP)

Are you a Fabletics VIP member? Have you experienced issues with the credits or renewals? Share your story below.