New York
CNN
—
Peloton agreed to pay a $19 million fine The Consumer Product Safety Commission said Thursday it did not promptly report the treadmill hazards and distributed recalled treadmills.
The fine settles charges that the company “deliberately failed to promptly report” defects in the Tread+Treadmill to U.S. regulators, the company said. statementThe civil penalties also settle charges that Peloton distributed recalled treadmills in violation of the Consumer Product Safety Act.
The CommitteeOne of the greatest civil penalties in our historyIn part because the company “distributed a recalled product that was fatally flawed.” In May 2021, Peloton recalled nearly 125,000 of his Tread+ brand treadmills following reports of the death of a 6-year-old and numerous injuries associated with the machines.
However, despite initially refusing to “Urgent Request” by CPSC in April. Such drops are extremely rare.
In May, then-CEO John Foley said Peloton “made a mistake in its initial response to the CPSC’s request. We should have been more productive with them from the beginning. We apologize for that.”
According to the fee, the fine was reflected its first refusalPeloton said he received reports of “trapping” by the Tread+ treadmill in 2018.
According to the commission, “by the time Peloton submitted its report to the commission, there had been more than 150 reports of people, pets and/or objects being pulled under the rear of the tread+treadmill.” .
Peloton did not Respond immediately to CNN’s request for comment.
The exercise equipment company, which saw phenomenal sales growth at the height of the pandemic, has faced myriad problems since then. The company has responded to management changes and massive staff and operational cuts.
Shares of Peloton Interactive Inc.
(PTON) From a high of about $167 in January 2021, it has fallen to about $8 in after-hours trading after the CPSC announcement.
– Chris Isidore and Jordan Valinsky also contributed to this story.
