Peak Fitness Sues Vagaro Over Data Transfer Dispute and Alleged Retaliation
Peak Fitness Group LLC has filed a lawsuit against Vagaro, Inc. alleging fraud, misrepresentation, and retaliatory practices when the fitness company attempted to transfer customer payment data, highlighting critical issues about small business data ownership and vendor accountability.
Peak Fitness Group LLC has filed a lawsuit in California Superior Court against Vagaro, Inc., alleging false advertising, fraud, and retaliatory business practices. The complaint centers on Vagaro's refusal to allow Peak Fitness to transfer encrypted customer payment tokens to another processor despite advertising this capability as part of its Premium Import Service.
According to court documents, Peak Fitness adopted Vagaro's software based on representations that customer credit card information could be imported. When the fitness company later sought to migrate its system to Square, a PCI DSS Level 1–compliant processor, Vagaro denied the request. This refusal contradicted both the company's advertised services and industry standards for data portability.
The dispute escalated when one of Peak Fitness's owners posted a review of his experience on his private X account. In response, Vagaro's Vice President of Legal, Adam Zachs, sent a cease-and-desist letter containing what the lawsuit describes as false statements intended to intimidate the business. Days later, Vagaro publicly stated on social media that businesses own their client data and can export it at any time, directly contradicting its prior written position.
Vagaro's public image is built on empowering small businesses, but our experience shows the opposite, said one of the founders of Peak Fitness Group LLC. When we exercised our right to write a review, Vagaro retaliated instead of resolving the issue. This case is about transparency, accountability, and protecting small business owners from being misled and bullied.
The lawsuit includes causes of action for fraud and deceit, breach of contract, unfair business practices, retaliation and abuse of process, and intentional interference with business relations. Peak Fitness seeks damages exceeding $450,000, injunctive relief compelling Vagaro to allow lawful data transfers, and punitive damages in the millions for intentional misconduct in preventing their expansion efforts.
The complaint also requests a judicial declaration affirming that small business owners have the right to share truthful information about software vendors without fear of retaliation or legal threats. No business owner should be silenced for speaking honestly about their experience with a service provider, I believe that is what a review is, Peak Fitness's founder added. This case is about more than Peak Fitness — it's about standing up for every small business that relies on truth and fair dealing in the digital marketplace.
The case, Peak Fitness Group LLC v. Vagaro, Inc., is proceeding before Judge Craig van Rooyen in the Superior Court of California, County of San Luis Obispo. The outcome could establish important precedents regarding data ownership rights and vendor accountability for small businesses navigating digital service platforms.