In March 2020, a class-action lawsuit was filed against Savage Race, an obstacle course racing event company, for allegedly engaging in a deceptive and unfair insurance scheme. Specifically, the complaint alleges that the company:
- Makes every racer pay $15 to purchase insurance when, according to plaintiffs, the insurance is “essentially worthless” and secondary because racers must use their own insurance to cover expenses first;
- Misleadingly represents that the “Participant Insurance Contribution” is collected by Savage Race and paid to a third-party insurer when, according to plaintiffs, the company does not disclose that it keeps a portion of the fee as a profit; and
- Misleadingly represents that its prices are as cheap or cheaper than the prices of its competitors.
(Szerszen et al v. Mad Cap Events, LLC d/b/a Savage Race, Case No. 20-cv-267, M.D. Fla.)
For more of TINA.org’s coverage of the marketing of racing events, click here.