Peloton Interactive has agreed to pay a $19 million fine for failing to promptly notify regulators of a known defect in its Tread+ exercise machines that could cause serious injury, according to the U.S. Consumer Product Safety Commission.
The civil penalty also settles charges that Peloton knowingly distributed recalled treadmills in violation of the Consumer Product Safety Act (CPSA).
Beginning in December 2018 and continuing into 2019, Peloton received reports of incidents associated with pull-under and entrapment in the rear of the treadmills, including reports of injuries. Those reported incidents included the death of a child and 13 injuries, including broken bones, lacerations, abrasions and friction burns, the agency said.
Despite possessing this information, Peloton did not immediately report to the Commission. By the time Peloton filed a report with the Commission there were more than 150 reports of people, pets, and/or objects being pulled under the rear of the Tread+ treadmill, including the death of a child and 13 injuries, including broken bones, lacerations, abrasions and friction burns. Peloton and the Commission jointly announced the recall of the Tread+ treadmill on May 5, 2021.
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.
In addition to the $19,065,000 civil penalty, the settlement agreement requires Peloton to maintain an enhanced compliance program and system of internal controls and procedures designed to ensure compliance with the CPSA. Peloton has also agreed to file, for a period of five years, annual reports regarding its compliance program and system of internal controls.
By a 4-0 vote, the Commission provisionally accepted the settlement agreement, subject to public comment.
In a statement, Peloton said: “Peloton remains deeply committed to the safety and well-being of our Members and to the continuous improvement of our products. We are pleased to have reached this settlement agreement with the U.S. Consumer Product Safety Commission (CPSC) and look forward to working cooperatively with the CPSC to further enhance Member safety. As such, Peloton continues to pursue the CPSC’s approval of a Tread+ rear guard that would further augment its safety features.”
The Tread+ is currently not on the market.
