The U.S. Consumer Product Safety Commission (CPSC) published a news release on January 5 announcing that Peloton Interactive
"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," said Commission Chair Alexander Hoehn-Saric.
The CPSC also charged Peloton for knowingly distributing machines after the recall had been initiated. In addition to the $19,065,000 fine, the exercise company will also be required to "maintain an enhanced compliance program and system of internal controls and procedures designed to ensure compliance" with safety regulations.
For the next five years, Peloton will have to file annual reports laying out its programs for compliance.
The company wrote in a statement following the CPSC announcement that it "remains deeply committed to the safety and well-being of our Members". Peloton said that it's hoping the CPSC will approve a Tread+ model with a rear guard to improve safety and that it looks forward to "working cooperatively with the CPSC to further enhance Member safety."
Starting in December of 2018, Peloton received more than 150 reports about incidents involving the Tread+ before it notified regulators about the issue. Objects, pets, and people could be pulled under the machine and pinned, potentially causing serious injuries. The reports detailed 13 injuries, from friction burns and abrasions to lacerations and broken bones.
One incident involved the death of a six-year-old child who was pulled and trapped under the rear end of a Tread+.
After a month of claiming that its machines are "safe when operated as directed", Peloton finally announced the recall of its defective treadmills in May of 2021. However, as detailed in the CPSC announcement, the company went on to "knowingly distribute" an additional 38 machines through August of 2021.
The company later called the delay in notifying regulators a "mistake" in a statement to reporters, saying that it would be "learning from this experience and will be a stronger company as a result."