The U.S. Consumer Product Safety Commission has announced that a settlement with the home workout giant Peloton has been reached over its treadmill recall, which will, in part, see the company pay a $19 million fine.
The recall from Peloton came in May 2021, when the Tread+ and Tread treadmills were recalled after a 6-year-old child died in an accident that involved one of the running machines.
At the time of the incident, Peloton chief executive John Foley shared a statement, saying he couldn’t express “how much this news and horrible reality has hit me personally and our entire team at Peloton.”
Following the death of the child and dozens of other reports of injury involving the machines, a recall was issued. However, the CPSC claimed Peloton knew of the potential risks long before it was reported to the agency.
For example, CPSC said that Peloton received reports of injuries and incidents involving the treadmills as early as December 2018. Reports included entrapments in the rear, a possible manufacturing flaw the commission says was not reported.
By the time a report was filed by Peloton, the number of reports had reached more than 150 and involved people, pets, and objects being pulled under the rear of the machine. Among the injuries listed in the reports included broken bones and friction burns, CPSC shared.
Now, the CPSC said the settlement reached last week resolves its charge that the company was slow to report possible risks to the agency.
“Peloton knowingly failed to immediately report to CPSC, as required by law, that its Tread+ treadmill contained a defect that could create a substantial product hazard and created an unreasonable risk of serious injury to consumers,” CPSC said in a statement.
The $19 million fine will also settle the charge of Peloton “knowingly” distributing 38 recalled Tread+ treadmills through personnel that worked for the company and third-party delivery firms from May to August 2021. According to the CPSC, this was a violation of the Consumer Product Safety Act.
The $19,065,000 settlement agreement was approved by the CPSC in a unanimous vote last month, and commissioners have shared that it’s one of the largest civil penalties in the commission's history.
“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,” Commission Chair 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 has released a statement on the settlement agreement, saying it is “pleased” with it. It also said that it is working to get approval for a Tread+ rear guard to enhance the safety of the machine.
"Peloton remains deeply committed to the safety and well-being of our Members and to the continuous improvement of our products," the company said in a statement.
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