According to the Washington Post, Peloton has agreed to pay $19 million in a settlement after failing to report defects in its treadmills that caused more than 150 incidents, including a number of accidents that resulted in the death of a 6-year-old child.
Peloton has agreed to pay one of the largest civil penalties in consumer product history, after it was found to have violated regulations by "failure to immediately report Tread+ and treadmill entrapment hazards and for distributing recalled treadmills," according to reports.
The U.S. Consumer Product Safety Commission (CPSC) has reported that Peloton knowingly failed to report defects in its treadmills, including the Tread+ model, which posed a serious risk of injury to consumers. The CPSC stated that Peloton's failure to report these defects "could create a substantial product hazard and created an unreasonable risk of serious injury to consumers."
According to the CPSC report, Peloton was made aware of at least 150 incidents involving its treadmills, including the Tread+ model, between 2018 and 2019, but failed to report them to the commission. The report also states that Peloton knowingly distributed 38 Tread+ treadmills after the product had been recalled.
The CPSC ruled against Peloton in a 4-0 vote.
"By acting with one voice, the CPSC sends a loud and clear warning to companies who continue to sell dangerous products that they know can cause serious injury or death," he continued.
In response to the CPSC's ruling, Peloton spokesperson Ben Boyd released a statement saying, "Peloton remains deeply committed to the safety and well-being of our Members and to the continuous improvement of our products." Boyd added that the company is "pleased to have reached this settlement agreement."
Peloton is still hoping to gain approval from the CPSC for its recalled Tread+ product, with plans to add a rear guard to prevent accidents. In 2021, the company attempted to add this guard before the incident that resulted in the death of a child, but it was not approved. The company is now seeking to have the guard approved in order to continue selling the Tread+ product.
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