12:00 PM EDT, 07/08/2024 (MT Newswires) -- Peloton Interactive ( PTON ) is facing a class action over its alleged violation of California's privacy laws after a US court denied the company's motion to dismiss the complaint, according to a Friday court filing.

In the proposed class action, Julie Jones alleged that the company violated state privacy laws through the Drift software embedded in the chat feature on its website. According to the filing, Jones claimed that Drift harvests data from the chats and uses the data for "a variety of purposes."

Peloton Interactive ( PTON ) filed a motion to dismiss the action in March, citing the plaintiff's failure to state a claim, but the US District Court for the Southern District of California denied this motion, saying the plaintiff has "sufficiently alleged" that Drift's software surreptitiously intercepts Peloton customers' data and uses the data for its own benefit.

Peloton Interactive ( PTON ) did not immediately respond to MT Newswires' request for comment.

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