Peloton to Pay $19 Million Civil Penalty to the Consumer Product Safety Commission (CPSC) related to Tread+ Recall

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Peloton has agreed to pay a $19 million civil penalty to the Consumer Product Safety Commission (CPSC) related to the recall of the Tread+ in 2021. The CPSC announced the news via press release:

The U.S. Consumer Product Safety Commission (CPSC) is announcing that Peloton Interactive Inc., of New York, has agreed to pay a $19,065,000 civil penalty. The settlement resolves CPSC’s charges that Peloton knowingly failed to immediately report to CPSC, as required by law, that its Tread+ treadmill contained a defect that could create a substantial product hazard and created an unreasonable risk of serious injury to consumers. The civil penalty also settles charges that Peloton knowingly distributed recalled treadmills in violation of the Consumer Product Safety Act (CPSA).

The CPSC goes on to assert that Peloton received reports of incidents with the Tread+ that lead to injuries beginning in December 2018 and failed to report those incidents to the CPSC. In addition, the CPSC states that “Peloton knowingly distributed in commerce 38 Tread+ recalled treadmills using Peloton personnel and through third-party delivery firms.”

In addition to the $19 million civil penalty, Peloton has also agreed to “maintain an enhanced compliance program and system of internal controls and procedures designed to ensure compliance with the CPSA.” In addition, Peloton will file annual reports for the next five years.

Peloton Senior Vice President of Global Communications Ben Boyd provided the below statement in response to the announcement:

Peloton remains deeply committed to the safety and well-being of our Members and to the continuous improvement of our products. We are pleased to have reached this settlement agreement with the U.S. Consumer Product Safety Commission (CPSC) and look forward to working cooperatively with the CPSC to further enhance Member safety. As such, Peloton continues to pursue the CPSC’s approval of a Tread+ rear guard that would further augment its safety features.

Peloton’s original treadmill, the Tread+, has not been available for sale since 2021 and last October the CPSC recall was extended another year through November 2023.

When the recall was extended Peloton maintained that they are working on a physical rear guard for the device, which has been hinted at in new patents that we reported on in November. Boyd’s statement reiterates this approach. Peloton CEO Barry McCarthy has previously stated that he is “hopeful” about the return of the Tread+.

You can read the complete press release from CPSC on their website.

This article first appeared on Pelo Buddy


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