On Thursday the US Consumer Product Safety Commission announced it had reached a settlement with exercise equipment manufacturer Peloton over defective treadmills which had injured users, as well as the company’s failure to report these incidents to the commission.

In 2021, Peloton recalled all of its treadmills following the death of a child and dozens of other injuries which occurred while using the products. In a press release issued Thursday, the commission announced Peloton had agreed to pay a $19 million civil penalty due to having “knowingly failed,” to report that the Tread+ treadmill posed a “substantial” hazard of serious injury to the consumer.

Beginning in December of 2018, Peloton began receiving reports of injuries in connection with the Tread+ treadmill, however it did not immediately report the incidents to the commission. By the time the company reported there may be a problem with the treadmills, over 150 people, pets, or objects had reported being pulled under the treadmills, including one incident in which a child died, and 13 injuries.

Peloton will maintain an “enhanced compliance program” as part of the settlement, to ensure future compliance with the regulations of the Consumer Product Safety Commission. Charges against the company alleging it “knowingly distributed” the recalled treadmills in violation of the Consumer Product Safety Act, will also be resolved by the settlement.

The release read, “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.”

Last year Peloton CEO John Foley stepped down amid a restructuring initiative, and the company laid off 2,800 employees in an effort to stabilize the stock price, which was tumbling.

Verified by MonsterInsights