Gymshark Class Action Lawsuit Claims Influencer Posts Not Properly Disclosed as Ads

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A proposed class action lawsuit claims that Gymshark runs a large-scale deceptive marketing campaign by using paid influencers to promote its products on social media without adequately disclosing that the posts are advertisements.

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The 28-page complaint contends that Gymshark violates federal guidance and consumer protection laws by recruiting popular fitness accounts on Instagram, YouTube and TikTok to endorse its apparel while failing to ensure that influencers disclose their financial relationships with the company.

According to the lawsuit, Gymshark has relied heavily on social media marketing since its founding in 2012, growing into a multi-billion-dollar activewear brand through a network of sponsored ambassadors. The suit says many of these influencers enter exclusive promotional contracts with Gymshark, receive commission for sales generated through their content (or are paid a flat fee to feature Gymshark products), and are barred from promoting goods from similar brands.

However, the complaint alleges, Gymshark instructs influencers to post content without stating that they are being paid to do so, misleading consumers into believing the posts are genuine, organic recommendations and artificially raising the value of Gymshark products.

“According to industry analysis and Gymshark’s own statements, the brand’s success hinges on its portrayal of these influencers as ‘genuine athletes’ or ‘members of the community’ rather than paid endorsers,” the filing claims.

The lawsuit references guidance from the Federal Trade Commission (FTC)—namely, its Endorsement Guides and Disclosures 101 for Social Media Influencers—that requires influencers to clearly disclose “material connections” to the brands they feature, including when they receive free products, payment or any other benefits from the brand. Per the suit, disclosures such as “#ad” or “#sponsored” must be clear and conspicuous so consumers can distinguish advertising from independent recommendations.

The case also notes that social media platforms have their own disclosure requirements. For example, the suit explains, Instagram requires influencers to use its built-in branded content tools for sponsored posts, and TikTok similarly provides content-disclosure settings for paid promotions.

The lawsuit claims that Gymshark benefits financially by encouraging influencers to avoid platform disclosure requirements because properly labeled posts receive less visibility and engagement than “organic” content.

Despite these safeguards, the complaint argues, Gymshark’s marketing strategy depends on influencers omitting or minimizing sponsorship status. The case contends that consumers thus see endorsements as genuine product preferences rather than paid advertising, leading them to pay premium prices for Gymshark’s products even though there are more affordable alternatives on the market.

“In short, Gymshark’s core marketing strategy is based on deception: it deliberately works to create the illusion that everyday people and fitness professionals genuinely prefer Gymshark products—and prefer it so much that they wear nothing else—when in reality, they are paid to do so,” the filing asserts.

The Gymshark class action lawsuit looks to represent all residents of the United States and Canada who purchased Gymshark products after viewing Gymshark influencer marketing that failed to disclose a material connection between the influencer and the retailer.

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