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.
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.
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.
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).
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.”