Peloton recalls treadmills amid concern over safety hazards

Peloton Interactive Inc. announced recalling its two treadmills after safety hazards mentioned by Consumer Product Safety Commission.

Peloton’s CEO, John Foley, apologized for not acting on the issue earlier. The exercise-equipment maker also said it is halting the sale of its treadmills.

The company had refused to comply with CPSC’s directions on recalling of the treadmills, weeks ago.

“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+,” Foley said in a joint statement with CSPC. “We should have engaged more productively with them from the outset.”

The shares of the company plunged by 10 per cent on Wednesday.

In April, CPSC had asked people with children and pets to stop the use of Peloton’s treadmills because of the equipment’s safety hazards. CPSC said the treadmill has caused several injuries and death of a six-year-old.

Peloton had described CPSC’s allegations inaccurate and misleading adding that the equipment is safe when used following proper safety recommendations.

After announcing the recall of its slimmed-down Tread machine or the higher-end Tread+ model, the company is offering refunds the customers.

The company has also offered customers to move the treadmill to a room inaccessible to children and pets.

Peloton is working on the treadmill’s software which would lock the treadmill after use and would unlock only with a password.

CPSC said that 72 cases have been reported citing people, pets or objects have been pulled under the back of the treadmill—of which more than a third involved children.

Customers can now, for Tread model, apply for refund or get the equipment repaired for free to secure its touch screen.

According to Peloton, 18 reports said that touch screen loosened while six reports said it fell off.

(With inputs from WSJ)

Picture Credits: WSJ