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Peloton Agrees To Pay $19 Million Dollar Fine For Failing To Report Treadmill Defect

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James Lynch Investigative Reporter
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Peloton agreed to pay a $19 million civil penalty for knowingly failing to report a treadmill defect to the U.S. Consumer Product Safety Commission (CPSC).

The company’s Tread+ treadmill contained a hazardous defect and posed an injury risk to consumers, which Peloton knew but did not immediately report as required by law, the CPSC said in a press release.

Peloton received reports beginning in December 2018 of customers being pulled under and trapped in the rear of treadmills, the CSPC added.

“I am pleased that my fellow Commissioners joined me to unanimously approve the proposed settlement agreement with Peloton Interactive, Inc. to resolve charges that Peloton failed to report that its Tread+ treadmill created an unreasonable risk of serious injury or death or had a defect which could create a substantial product hazard,” CPSC Chair Alexander Hoehn-Saric said in a statement.

“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,” Hoehn-Saric added. (RELATED: Regulator Fines Tech Giant Millions For Showing Targeted Ads Based On User Activity)

Peloton did not report the defect to the CPSC until over 150 customers reported being pulled under the Tread+ treadmills and a six year old child died from being trapped under a treadmill. Other injuries included broken bones, lacerations, abrasions and friction burns according to the CPSC.

Peloton and the CPSC announced the Tread+ had been recalled on May 5th, 2021, and the company offered customers a full refund until Nov. 6, 2022, according to the CPSC recall.

“Peloton remains deeply committed to the safety and well-being of our Members and to the continuous improvement of our products,” a Peloton spokesperson told the Daily Caller.

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,” the spokesperson added.

Peloton also knowingly distributed recalled treadmills, violating the Consumer Product Safety Act (CPSA), and this additional charge was also resolved by the fine, the CPSC announced.