Peloton Interactive has agreed to pay a $19 million nice for failing to promptly report a defect with its Tread+ treadmill that might cause serious injury, regulators said Thursday.
The Consumer Product Safety Commission, in a statement, said the civil penalty would resolve the agency’s charges that the corporate had received greater than 150 reports of incidents where users were pulled under and entrapped by the point it notified regulators.
The penalty also settles charges that Peloton knowingly distributed recalled treadmills in violation of the Consumer Product Safety Act.
Peloton shares were down 4% at $8.49 on Thursday.
The 150 reports included the death of a toddler and 13 injuries, including broken bones, lacerations, abrasions and friction burns, CPSC said.
Peloton and the CPSC jointly announced the recall of the Tread+ treadmill in May 2021.
Peloton and the CPSC jointly announced the recall of the Tread+ treadmill in May 2021.CPSC
The agreement requires Peloton to “maintain an enhanced compliance program and system of internal controls and procedures designed to make sure compliance” and for five years Peloton will file annual reports regarding its compliance program and system of internal controls.
Peloton said in an announcement it was pleased to have reached this settlement and said “it continues to pursue the CPSC’s approval of a Tread+ rear guard that will further augment its safety features.” The corporate added it “stays deeply committed to the protection and well-being of our members and to the continual improvement of our products.”
