Peak Fitness Sues Vagaro Over Data Transfer Dispute and Alleged Retaliation

Peak Fitness Group LLC, a California-based fitness business, has filed a lawsuit in California Superior Court against Vagaro, Inc., alleging false advertising, fraud, and retaliatory conduct in a dispute over customer data transfer rights. The case centers on whether small businesses truly control their customer data when using third-party software platforms and whether vendors can legally retaliate against negative reviews.

According to court filings, Peak Fitness adopted Vagaro's scheduling and payment platform after the company advertised its "Premium Import Service" with the ability to import customer credit card information. The fitness company relied on these representations when implementing Vagaro's system to manage its customer base. However, when Peak Fitness later attempted to migrate to another platform and transfer encrypted customer payment tokens to Square, a PCI DSS Level 1–compliant processor, Vagaro refused the request despite its previous advertising claims.

The legal complaint alleges that when one of Peak Fitness's owners shared his experience in a review on his private X account, Vagaro's Vice President of Legal, Adam Zachs, sent a cease-and-desist letter containing false statements intended to intimidate and silence the business. Days later, Vagaro publicly posted on social media that "businesses own their client data and can export it at any time" – directly contradicting the company's prior written statements to Peak Fitness.

"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 multiple causes of action including fraud and deceit, breach of contract, unfair business practices, retaliation and abuse of process, and intentional interference with business relations. Peak Fitness is seeking damages exceeding $450,000, injunctive relief compelling Vagaro to allow lawful data transfers, and punitive damages in the millions for intentional misconduct that allegedly prevented their expansion efforts.

The case 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," the Peak Fitness 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 lawsuit, 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 portability rights and review protections for small businesses using software-as-a-service platforms, potentially impacting thousands of businesses that rely on similar scheduling and payment systems.