Peloton has agreed to pay a penalty of more than $19 million after the Consumer Product Safety Commission said the exercise company failed to report potential hazards in using its treadmill and sold previously recalled products.
According to the commission, beginning in December 2018 and continuing into 2019, Peloton received reports of injuries associated with individuals being pulled under and trapped in the rear of its treadmills.
Nonetheless, the safety commission said, Peloton did not immediately report the injuries to the commission. Ultimately, 150 people, pets and/or objects were pulled under the rear of Peloton's Tread+ treadmills, resulting in 13 injuries. A 6-year-old died in one incident.
In May 2021, Peloton and the commission jointly announced the recall of the Tread+ treadmill, but Peloton subsequently sold 38 more of the recalled treadmills via Peloton personnel and through third-party delivery firms, the CPSC said.
The commission unanimously approved the multimillion-dollar penalty, which was announced Thursday. In addition to the fine, Peloton must maintain a strict compliance program as part of its settlement with the Commission.
"By acting with one voice, the CPSC sends a loud and clear warning to companies who continue to sell dangerous products that they know can cause serious injury or death," the chair of the safety commission, Alexander Hoehn-Saric, said in a statement. "By failing to report these incidents to the Commission immediately, Peloton not only violated the Consumer Product Safety Act, but also consumers’ trust."
Peloton said in a statement that it was pleased to have reached a settlement and that “it continues to pursue the CPSC’s approval of a Tread+ rear guard that would further augment its safety features.” The company added it “remains deeply committed to the safety and well-being of our members and to the continuous improvement of our products.”