WHAT’S BEING CLAIMED:
- Peloton announced on Wednesday that it will recall its treadmill products following hazardous concerns.
- The company said that it will coordinate with the Consumer Product Safety Commission to set new industry safety norms of treadmill.
- About 125,000 units of Tread+ and 1,000 treadmill products will be recalled.
Treadmill seller company Peloton announced on Wednesday that they will recall all their machines due to reports of hazardous cases.
The statement was a complete shift of the company’s initial response with the US Consumer Product Safety Commission (CPSC).
Following several reports of casualties including one deceased, Peloton made an apology for not being able to act swiftly to address the rising safety concerns over its product.
“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+,” CEO John Foley said in a statement Wednesday. “We should have engaged more productively with them from the outset. For that, I apologize.”
Per the company, clients who already have either the Tread or Tread+ models are strongly encouraged to refrain from using it and contact them for either a full refund or any possible alternative action. Peloton said that it is now working to fix the current structure of the treadmill.
The company said on Wednesday that it would work hand-in-hand with the CPSC to establish new industry safety norms for the product.
“This recall is the right step — though dangerously delayed,” said Sen. Richard Blumenthal (D), who represents Connecticut and chair of the Subcommittee on Consumer Protection, Product Safety, and Data Security. “Peloton unacceptably put consumers at risk, obstructed the CPSC’s investigation and its consumer warnings.”
The incident clearly took a major blow to the company, as the damage is yet to be known. As of Wednesday, though, the company’s shares declined to almost 15 percent, a record dip since September of last year. The estimated loss is valued at around $4.1 billion market value.
Before it launched its treadmill product in 2018, the company was popular for selling at-home cycling classes which also thrived during the pandemic.
Per the CPSC, Peloton’s treadmills are developed with distinct features versus competitor brands. The company’s treadmill has an “unusual belt design that uses individual rigid rubberized slats or treads that are interlocked and ride on a rail,” rather than the typical spontaneous belt. It also has a huge gap between the floor and Tread+’s belt, having a leeway for anything that could possibly go underneath.
There were at least 18 reports of touchscreen loosening mishap and six reports of touch screen detaching and falling from the treadmill, the commission said. Last month, the agency released a warning about the use of Tread+, following a fatal accident involving a child. The product also caused several reported injuries which include pets.
Around 125,000 units of Tread+ and over 1,050 of Tread products will be included in the recall.