Peloton Updates Recall Regulatory Hangover
Peloton Interactive has included in a filing with the Securities and Exchange Commission (SEC) up-to-date information on the status of a Consumer Product Safety Commission (CPSC) investigation into its Tread+ connected fitness treadmill, which the company has recalled and stopped selling.
The CPSC had issued a warning to consumers about the Tread+ in 2021 after Peloton said it had received reports of injuries related to the product, and the company began a voluntary recall in May 2021, according to a Wednesday (Sept. 7) report by Seeking Alpha.
Peloton said in a Form 10-K filed with the SEC Wednesday, “The CPSC is currently investigating the matter and in August 2022 we were notified by the CPSC that the agency staff believes we failed to meet our statutory obligations under the Consumer Product Safety Act and intends to recommend that the CPSC impose civil monetary penalties.”
The company noted in the filing that any penalties or fines, the recall and any future recalls of other products could have an adverse effect on Peloton’s future operating results, brand reputation and business, per the report.
As PYMNTS reported in April 2021, when the CPSC published a bulletin that asked consumers to stop using the Tread+, Peloton said the bulletin was “inaccurate and misleading.”
Read more: Peloton Responds to Consumer Product Safety Commission Bulletin
The company said in a press release that there was no reason to stop using the Tread+ “as long as all warnings and safety instructions are followed.”
In Wednesday’s filing with the SEC, Peloton reiterates that it does not agree with “all of the assertions in the CPSC’s warning.”
In a page on its website devoted to the Tread+ and its recall, Peloton said it has received reports that people, pets and objects have been pulled under the treadmill. It advises owners to stop using the product and to read its frequently asked questions (FAQ) page about the options available to them in the recall.
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