The exercise equipment company Peloton has agreed to pay a $19,065,000 civil penalty in a settlement for failing to report defective equipment and knowingly selling recalled treadmills.
Beginning in December 2018 and continuing through 2019, Peloton began receiving reports of injuries related to its Tread+ treadmill product. The U.S. Consumer Product Safety Commission (CPSC) said in a Thursday press release that Peloton failed to immediately report these issues.
According to the CPSC, by the time the company did finally disclose the safety issues, the government agency had gathered more than 150 reports of people, pets, and objects being pulled under the rear of the treadmills.
One child was killed and 13 other people were injured, sustaining broken bones, lacerations, abrasions, and friction burns after being pulled under Tread+ treadmills. Few details, however, are available about the child who was killed after being pulled under by a Tread+ treadmill product.
On May 5, 2021, the CPSC and Peloton issued a joint statement announcing a recall of the Tread+ machine. That announcement said “a six-year-old child recently died after being pulled under the rear of the treadmill.”
As part of the recall, Peloton offered full refunds for owners to return their Tread+ treadmills by Nov. 6, 2022. The Tread+ product is a treadmill with a 32-inch high definition (HD) touchscreen that allows users to exercise with guided video instructions from Peloton instructors. According to the company’s website, Tread+ treadmills are available at a starting price of $4,295.
For customers wishing to keep their Tread+ products, Peloton offered to move those products to a room where children or pets cannot access the treadmill. The May 2021 recall announcement also said the company is implementing software updates to automatically lock the Tread+ after each use and require users to enter a four-digit passcode to unlock their Tread+ products.
As part of the May 2021 recall notice, Tread+ owners were advised that any returns after Nov. 6, 2022, would receive a partial refund.
Peloton Sold Recalled Treadmills
The CPSC said part of Peloton’s $19 million settlement is a penalty for the company selling the recalled Tread+ treadmills.
“Staff also charged that after the public announcement of the recall, Peloton knowingly distributed in commerce 38 Tread+ recalled treadmills using Peloton personnel and through third-party delivery firms,” the CPSC statement read.
The CPSC said the decision to continue distributing the recalled products violated the Consumer Product Safety Act (CPSA).
“When a company continues to sell dangerous products that they know can cause serious injury or death, it must be held accountable. On Dec. 28, 2022, the Consumer Product Safety Commission (CPSC) approved a civil penalty settlement with Peloton Interactive, Inc. (Peloton) that does just that,” CPSC chair Alexander Hoehn-Saric said following Peloton’s settlement.
Peloton Working to Improve Safety Compliance
In addition to the $19 million penalty, Peloton’s settlement agreement also requires the company to maintain an enhanced safety compliance program. Peloton also agreed to file an annual report on its compliance efforts for the next five years.
Peloton said it was pleased to have reached the settlement and “remains deeply committed to the safety and well-being of our members and to the continuous improvement of our products.”
The exercise equipment company also said “it continues to pursue the CPSC’s approval of a Tread+ rear guard that would further augment its safety features.”
Reuters contributed to this report.
