Peloton Recalls Tread+, Tread Treadmills
Shares of Peloton Interactive Inc. (PTON) lost about 15% in regular trading on Wednesday after the treadmill maker announced two separate voluntary recalls of its Tread+ and Tread treadmills.
The announcement is a major uturn made by Peloton after it initially said that its products were safe despite several reports of young children and pets getting injured.
“The decision to recall both products was the right thing to do for Peloton’s Members and their families. 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+,” said Peloton’s CEO John Foley. “We should have engaged more productively with them from the outset. For that, I apologize.”
Last month, the U.S. Consumer Product Safety Commission issued a warning about the danger of Peloton Tread+ exercise machine after multiple incidents of small children and a pet being injured beneath the machines. U.S. regulators asked customers to stop using the treadmill maker’s Tread+ machine.
A 6-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 as second- and third-degree abrasions, broken bones, and lacerations.
The CPSC said it received 18 reports about the touchscreen loosening and six reports of the touchscreen detaching and falling from the Tread.
Peloton has asked consumers to immediately stop using the recalled treadmills and contact for a full refund.
The recall affects about 125,000 Tread+ machines and roughly 1,050 Tread products in the U.S.
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