ALO Yoga is currently at the centre of a proposed class action lawsuit alleging deceptive marketing practices tied to social media influencers.
According to a recently filed 38-page complaint, ALO and more than a dozen influencers are accused of failing to disclose paid endorsements on Instagram, in violation of federal and state advertising laws. The plaintiffs allege that ALO’s rapid growth and market dominance were driven by a social-first strategy, particularly through its ALO Moves platform, and were heavily reliant on influencer content that appeared to be organic but was sponsored.
Named plaintiffs Alina Sulici and Alex Chihaia claim they purchased ALO products based on Instagram posts from influencers they followed - posts that featured positive product mentions and tags, but lacked any clear disclosure of material connections. The lawsuit contends that these omissions misled consumers, causing them to pay premium prices for products they believed were independently endorsed.
The plaintiffs are seeking to certify a nationwide class, along with several state-specific subclasses, and are asserting claims under:
- The Federal Trade Commission Act (as a predicate for state law violations)
- Consumer protection laws in Illinois and California
- Unfair trade practices laws across more than 20 states
- Unjust enrichment and negligent misrepresentation
The complaint seeks over $150 million in damages, in addition to injunctive relief, restitution, and attorneys' fees.
This case is part of a growing trend where plaintiffs are leveraging state consumer protection laws to hold brands and influencers accountable for deceptive advertising practices. As highlighted in earlier cases, such as the $50 million lawsuit against Revolve, failure to comply with disclosure rules can now trigger not just FTC scrutiny but significant class action exposure.
The marketing takeaway
For brands and agencies, the message is clear: influencer protocols must be airtight. Ensure all paid relationships are clearly disclosed in line with FTC guidelines, not only to maintain consumer trust but to avoid any legal risk.
