Peloton is recalling all its treadmills after a child died and numerous reports of injuries
Pelotonis recalling all its treadmills after a child died and users reported injuries.
- Shares of the company fell sharply in trading Wednesday following the announcement.
- It's the second major recall for Peloton after it issued a voluntary recall on pedals in October.
Peloton is recalling all its treadmills after one child died in an accident and others reported injuries, the company said in a joint statement with the US Consumer Product Safety Commission on Wednesday.Federal regulators pressured the company last month to recall its $4,295 Tread+ treadmill after the product fatally injured a child in March.
Shares of the fitness company - known for its bike, treadmill, and standalone subscription models - fell as much as 10% in trading following the announcement. The company became a breakout star during the pandemic as Americans sought out alternative ways to exercise at home.Read more: Some Peloton customers reported treadmill malfunctions, injuries, and safety concerns as early as 2019 - and said Peloton's response was sluggish
Peloton was originally set to release a slimmer model of its treadmill this month for a little over half of the price of the original at $2,495. The Tread+ was rebranded to its current name in September.The company instructed customers to immediately stop using the treadmill and contact the company for a full refund or "other qualified remedy." Peloton has also stopped the sale and distribution of the Tread+. "The agreement between CPSC and Peloton is the result of weeks of intense negotiation and effort, culminating in a cooperative agreement that I believe serves the best interests of Peloton and of consumers," Robert S. Adler, acting chairman of the Consumer Product Safety Commission, said. "Today we have taken steps to prevent further harm from these two products."
The recall comes on the heels of two recently filed class-action lawsuits against Peloton that allege the fitness company violated consumer-protection laws in its marketing and sale of the treadmills.
According to the first suit, filed on behalf of Peloton consumers on April 20, the company knowingly "sold and marketed the device as safe and appropriate for use by families in the home, even though its design makes it inherently and uniquely dangerous to children."In the second suit, filed on April 29, investors said the company made claims regarding the Tread+ that were "materially false and/or misleading" and failed to disclose "adverse facts pertaining to the company's business … which were known to defendants or recklessly disregarded by them."
The treadmill incident marks the second major product recall for Peloton after it issued a voluntary recall on pedals for 27,000 bikes in October 2020 in response to reports from consumers that they were breaking off mid-ride.
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