Peloton persuades US judge to send sales tax lawsuit into arbitration

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Peloton persuades US judge to send sales tax lawsuit into arbitration
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NEW YORK : A U.S. judge on Monday handed a victory to Peloton Interactive Inc, saying subscribers must arbitrate their claims that the maker of at-home bicycles improperly charged sales tax on memberships in New York, Virginia, Massachusetts and Oregon.Saying the case did not belong in federal court, U.S.

NEW YORK : A U.S. judge on Monday handed a victory to Peloton Interactive Inc, saying subscribers must arbitrate their claims that the maker of at-home bicycles improperly charged sales tax on memberships in New York, Virginia, Massachusetts and Oregon.

Ramos said Peloton had not waived its right to arbitrate after failing to pay filing fees and defaulting in an unrelated 2019 arbitration over the deletion of thousands of videos from its streaming library. The plaintiffs contended that New York-based Peloton should have treated its $39-a-month"All Access" and $12.99-a-month digital memberships as tax-exempt"digital goods" in the four states, instead of charging sales tax between 6.3 per cent and 8.9 per cent.

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