Gymshark is facing a proposed class action in the U.S. District Court for the Southern District of New York alleging the fitness apparel company built its brand on influencer endorsements that were not adequately disclosed as paid promotions.

The suit, filed June 16 by Florida resident Mihaela Lupea on behalf of a proposed nationwide class of U.S. and Canadian consumers, alleges Gymshark relied on an extensive network of fitness influencers across Instagram, TikTok, YouTube, and other platforms to promote its products in ways that created the impression of authentic, independent recommendations rather than sponsored content. The complaint states that Gymshark has “built a multi-billion-dollar apparel empire on misleading social media marketing strategies that systemically masquerade paid influencer promotion as authentic endorsements” of its products.

According to the complaint, influencers received compensation through direct payments, free products, affiliate commissions, and other benefits tied to their promotional activity. The suit alleges that in some posts, disclosures were absent entirely, while in others they were buried in lengthy captions, placed among hashtags, or positioned below the point where a user would need to click “see more” to view them.

The complaint goes further than a standard failure-to-disclose claim. It alleges Gymshark entered into exclusive arrangements with some influencers that prohibited them from “endorsing, advertising, or wearing competing brands,” while consumers remained unaware those contractual relationships existed. The plaintiff argues this left consumers with a false impression that influencers independently preferred Gymshark over competing athletic apparel brands.

The lawsuit asserts claims under New York General Business Law Section 349 and unjust enrichment, seeking damages, restitution, disgorgement, punitive damages, and attorneys’ fees. As in other recent Influencer Marketing suits, the plaintiff advances a “price premium” theory, arguing that undisclosed endorsements allowed Gymshark to charge more than it otherwise could have because consumers believed they were viewing genuine recommendations rather than paid advertising. The complaint also contends that undisclosed endorsements can be more persuasive than clearly labeled ads and may receive greater algorithmic visibility, amplifying their effect on purchasing decisions.

The case adds Gymshark to a growing list of brands facing class actions over influencer disclosure practices, following similar suits against Revolve and Alo Yoga. Legal commentary tracking the trend notes that plaintiffs are increasingly targeting not just individual captions but the underlying contract structures, including exclusivity terms, that shape how creators promote a brand.

Sources: The Fashion Law, Frankfurt Kurnit Klein & Selz PC

Subscribe to Our Newsletter

Check Out Our Podcast