Shares of Peloton Interactive Inc. plummeted on Wednesday after the company announced it was voluntarily recalling 125,000 Tread and Tread+ treadmills. The recall comes in the wake of 70 reports of injuries to children, and one death being attributed to the machines.
On Wednesday, the company and the U.S. Consumer Product Safety Commission (CPSC) announced two separate recalls of Tread and Tread+ machines, following the death of one child and a host of other incidents. The company had previously resisted pressure to issue such a recall from the U.S. safety agency, a stance that Peloton CEO John Foley admits was a mistake. In a statement released by Mr. Foley, he said –
“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.”
He said that Peloton now intends to work closely with the CPSC to “set new industry safety standards for treadmills because the company has a desire and a responsibility to be an industry leader in product safety.”
Mr. Foley said yesterday that the voluntary decision to recall the devices after the child’s death, and other reports of injuries was the “right thing to do” for the sake of the company’s members and their families.
Amongst the reported injuries caused by the machines are bruising, cuts and abrasions, and broken bones. Last month, the company warned parents to keep children clear of the machine after a six-year-old was killed when he was pulled under the rear of the Tread+ machine.
Speaking at the time, Mr. Foley said the incident was a “tragic accident,” and one of a handful of incidents in which children had been injured by the firm’s exercise equipment.
The CPSC said that Peloton is voluntarily recalling both the Peloton Thread and the Thread+ models, the former due to a safety risk associated with its display falling off. The CPSC said they had reached an agreement with the firm, under which the company must stop selling its machines in the U.S. and offer full refunds to customers who want to return them.
Peloton is a company that cashed in on the pandemic. As gyms closed their doors due to restrictions, Peloton offered a service that allowed people to exercise at home with live video feeds from trainers. However, it quickly became apparent that both models of their exercise equipment were seriously flawed.
More serious are the dangers associated with the Tread+ models. According to the CPSC because – “Adult users, children, pets, and objects can be pulled underneath the rear of the treadmill, posing a risk of injury or death.”
Shares in the company fell by more than 14% after the recall was announced.