Numerous complaints from customers and several effective warnings from federal regulators later, Peloton, the pioneer of home exercise equipment, has recalled two of its treadmill models. This course of action only came after the company came in hot waters for its faulty equipment that left one dead and several others injured.
Along with the U.S Consumer Product Safety Commission, Peloton issued an announcement that directed owners of the Peloton’s Tread and Tread Treadmill models to stop using the products at any cost. Peloton’s Tread _ is the company’s flagship premium product worth $4,295 and yet, the heavy price tag couldn’t ensure the safety of its users: 72 cases of injuries concerning adults, children, and pets who were taken down by the treadmill’s ramp were reported by the CPSC.
To assuage the concerns of their clients, Peloton has offered its Tread users a full refund till November, after which only a partial refund will be given. Meanwhile, customers who have the Tread model will get the chance to have a free inspection and upgrade of their machine. They can also opt for getting a full refund for their product. Peloton’s decision to recall the Tread model worth $2,495 came in light of the risk it poses to the users- the machine’s touchscreen is easily detachable and can fall off even during use.
Soon after the announcement was made, the company saw a massive decline in the value of its stocks that fell from a solid $97 to a meager $82 by the afternoon. Peloton CEO, John Foley spoke out about the company’s initial response to the situation at hand. According to Foley, Peloton should have “engaged more productively” with the CPSC when a request was made to recall the Tread. He looks back at the company’s course of action and thinks of it as a mistake to have obliged to the demands of the CPSC.
CPSC first issued its warning against Peloton’s Tread+ model in April, saying that the machine can be extremely dangerous for children and pets at home. The institutional body further highlighted 39 injuries and a death that had been linked to the usage of the machine. However, these warnings were refuted by Peloton who then declared that their products are safe and refused to recall the Tread + model.
