Exercise equipment company Peloton Interactive has been fined $19 million after it failed to promptly report a defect with one of its products. This penalty resolves charges that the company had received more than 150 reports of incidents involving the Tread+ treadmill, and had knowingly distributed recalled models.
The fine is one of the largest ever issued by the CPSC.
A total of 150 incident reports were filed for the treadmill, including the tragic death of a child and 13 injuries, per the CPSC.
The Consumer Product Safety Commission (CPSC) issued a recall of the Peloton Tread+ in May 2021. The recall was issued after it was determined that the Tread+ posed serious risks of injury or death.
Peloton’s settlement agreement requires it to establish an enhanced compliance program and system of internal controls and procedures. The company also must hire an independent safety consultant to review its safety policies and procedures.
Peloton put out a statement saying it was pleased to have reached the settlement and remains committed to the safety and well-being of its members. The company said it has taken additional steps to improve the quality of its products and has implemented new safety protocols for its entire product line.
The $19 million fine is one of the largest ever issued by the CPSC. The agency has advised consumers to stop using the Tread+ immediately and contact Peloton for a full refund. Additionally, the CPSC is urging all parents and caregivers to be aware of potentially dangerous products and to report any incidents involving them.
Peloton’s agreement to pay the fine is a reminder for all companies to ensure their products are safe for consumers. The incident highlights the need for companies to be vigilant about product safety and to promptly report any defects. The agreement also serves as a warning to consumers that dangerous products can be found in their homes and to be aware of the potential risks.