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Peloton to pay $19 million fine for failing to report treadmill dangers and sell recalled gear

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Peloton has agreed to pay a fine of more than $19 million after the Consumer Product Safety Commission said the exercise company failed to point out potential dangers of using its treadmill and sold treadmills. previously recalled products.

According to the commission, beginning in December 2018 and continuing through 2019, Peloton received reports of injuries associated with people being pulled and trapped in the back 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 back of Peloton’s Tread+ treadmills, resulting in 13 injuries. A 6-year-old child died in an incident.

In May 2021, Peloton and the commission jointly announced the recall of the Tread+ treadmill, but Peloton later sold 38 other recalled treadmills through Peloton staff and through third-party delivery companies, the CPSC said.

The commission unanimously approved the multi-million dollar penalty, which was announced on Thursday. In addition to the fine, Peloton must maintain a strict compliance program as part of its settlement with the Commission.

“Acting with one voice, the CPSC is sending a loud and clear warning to companies that continue to sell unsafe products that they know can cause serious injury or death,” the commission’s chairman said. security, Alexander Hoehn-Saric, in a press release. . “By failing to immediately report these incidents to the Commission, Peloton not only violated the Consumer Product Safety Act, but also violated consumer trust.”

Peloton said in a statement that it is pleased to have reached a settlement and that “it continues to seek CPSC approval of a Tread+ rear guard that would further increase its safety features.” The company added that it “remains deeply committed to the safety and well-being of our members and the continuous improvement of our products.”

Reuters contributed.

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