Peloton Interactive is facing possible civil penalties over its voluntary recall of the Trend+ treadmill, the connected fitness leader disclosed in a regulatory filing. The Tread+ was taken off the market last year following reports that adults, children, pets, and objects had been pulled beneath the equipment and caused the death of a child.
In April 2021, the Consumer Product Safety Commission (CPSC) warned consumers about the safety hazards associated with the Tread+, and following Peloton’s voluntary recall of the equipment in collaboration with the CPSC in May 2021, it has continued to investigate the matter.
Peloton added in the filing, “As noted, Peloton in August 2022, we were notified by the CPSC that the agency staff believed we failed to meet our statutory obligations under the Consumer Product Safety Act and intends to recommend that the CPSC impose civil monetary penalties. While we disagree with the agency staff, we are engaged in ongoing confidential discussions with the CPSC.”
In addition to the CPSC, Peloton received a subpoena from the Department of Justice and Department of Homeland Security for documents and other information related to reporting injuries associated with its products, according to the filing.
The SEC is also investigating Peloton’s public disclosures concerning the recall and other matters.
“We are cooperating fully with each of these investigations, and at this time, we are unable to predict the eventual scope, duration or final outcome of the investigations,” Peloton added.
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