In a major reversal, Peloton reached an agreement with the U.S. Consumer Product Safety Commission (CPSC) to recall both its of Peloton’s Tread+ and Tread treadmills.
The recall, involving 126,000 treadmills, came after Peloton defended the treadmills after a child died in an accident linked to a Tread+. Peloton CEO John Foley issued an apology for not cooperating sooner to resolve the issue.
In the separate recalls, the CPSC linked the Tread+ and Tread to one death and 90 incidents of injuries.
“The decision to recall both products was the right thing to do for Peloton’s Members and their families,” said Foley in a statement. “I want to be clear, Peloton made a mistake in our initial response to the Consumer Product Safety Commission’s request that we recall the Tread+. We should have engaged more productively with them from the outset. For that, I apologize. Today’s announcement reflects our recognition that, by working closely with the CPSC, we can increase safety awareness for our Members. We believe strongly in the future of at-home connected fitness and are committed to working with the CPSC to set new industry safety standards for treadmills. We have a desire and a responsibility to be an industry leader in product safety.”
In mid-April, the CPSC, in an unusual move, warned people to stop using Peloton’s Tread+ “immediately” if they have children or pets in the home, citing 39 incidents including one death. At the time, Peloton called the warning “inaccurate and misleading” and some analysts felt the heightened safety concerns could slow subscriber growth.
The warning came after Peloton, on March 19, released news of a child’s death by a $4,000 Tread+ and CPSC’s subsequently announced an investigation into that incident.
As part of the recalls, consumers who have purchased either the Tread+ and Tread treadmill are being encouraged to immediately stop using them and contact Peloton for a full refund. Consumers also have the option to implement software improvements and take other safety measures. Peloton has also stopped the sale and distribution of the Tread+ and continues to work on additional hardware modifications.
In the U.S., the Tread was only sold as part of a limited invitation-only release from about November 2020 to about March 2021 and the company is currently working on a repair to be offered to Tread owners in the coming weeks.
In issuing its initial warning in April, CPSC noted that its investigation turned up “dozens of instances” of injuries and said the Tread+ poses serious risks to children for abrasions, fractures and death. The warning included a YouTube video of a two-year-old boy from northern Virginia getting sucked under a Tread+ before he is eventually able to free himself. The boy in the video was not hurt.
In the recall statement, CPSC said it now has knowledge of 90 incidents with both treadmills in addition to the death of one child.
Robert S. Adler, acting chairman of the CPSC, said in a statement, “I am pleased that the U.S. Consumer Product Safety Commission and Peloton have come to an agreement to protect users of the Peloton Tread+ and Tread products. The agreement, which the Commission voted this morning to accept, requires Peloton to immediately stop selling and distributing both the Tread+ and Tread products in the United States and refund the full purchase price to consumers who wish to return their treadmills. 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. I would like to thank the CPSC technical staff who have worked tirelessly to protect consumers and to warn the public. Today we have taken steps to prevent further harm from these two products.”
The recall of the Tread+ involves about 125,000 units. The treadmill was launched as the Peloton Tread in 2018 and renamed Tread+ in September 2020. The items were sold online at onepeloton.com and at Peloton showrooms from September 2018 through April 2021 for about $4,295.
The recall notice indicated that a six-year-old child recently died after being pulled under the rear of the treadmill. In addition, Peloton has received 72 reports of adult users, children, pets and/or objects being pulled under the rear of the treadmill, including 29 reports of injuries to children such second- and third-degree abrasions, broken bones and lacerations.
Consumers are being urged to stop using the recalled Tread+ and contact Peloton for a full refund until November 6, 2022. Consumers who don’t want a refund are being urged to move the treadmill to a room where children or pets cannot access the treadmill, and Peloton indicated that it is implementing software improvements to the product to automatically lock the Tread+ after each use. A 4-digit passcode will be required to unlock the Tread+ and prevent unauthorized access.
The recall of the lower-priced Tread involves about 1,050 units (in addition, about 5,400 in Canada). The item was sold through a limited invitation-only release online at onepeloton.com and at Peloton showrooms from November 2020 through March 2021 for about $2,495.
Peloton is aware of 18 reports of the touchscreen loosening and six reports of the touchscreen detaching and falling. No injuries have been reported in the U.S. There have been reports of minor injuries such as abrasions, minor cuts, and bruises in Canada and the United Kingdom.
Consumers are being encouraged to immediately stop using the treadmills and contact Peloton for a full refund. Peloton is offering consumers who do not want a refund the option of waiting for a free inspection and repair that will secure the touchscreen to the treadmill to help prevent future incidents.
The stock price of Peloton Interactive was down 10 percent to $87.02 in late morning trading Wednesday. Peloton shares have traded between $35.21 and $171.09 in the past year.
Photo courtesy Peloton Tread+
