The U.S. Consumer Product Safety Commission (CPSC) has issued an urgent warning to parents to stop using the Peloton Tread+ (NASDAQ: PTON) after multiple instances of the machine pulling children and pets beneath the rollers. This government agency warning comes less than a month after a child's death led Peloton to issue their own warning related to their Tread+.
"I'm reaching out to you today because I recently learned about a tragic accident involving a child and the Tread+, resulting in, unthinkably, a death," CEO of Peloton John Foley wrote in a customer disclosure in March. "While we are aware of only a small handful of incidents involving the Tread+ where children have been hurt, each one is devastating to all of us at Peloton, and our hearts go out to the families involved."
Following the company's announcement, Peloton shares fell by more than 3%. On April 21, the stock had fallen to $99.93, its lowest price since September of last year. For its part, Peloton wrote in an investor announcement in response to the government agency that the CPSC warning is "inaccurate and misleading".
"Peloton knows that the Tread+ is safe for the home when used in accordance with warnings and safety instructions," the announcement reads.
As of their urgent warning, CPSC says they are aware of 39 incidents in which the Tread+ has lead to injury, including the death mentioned above. CPSC argues that children and pets are at serious risk of fractures, abrasions, and death in relation to this machine.
Some of these incidents allegedly occurred while the Peloton was in use by a parent, meaning that supervision won't necessarily prevent injury. The CPSC also suggested that users themselves could be at risk of injury if they lose balance while on the Tread+.
In their warning, the CPSC included a link to a video showing a child first getting stuck, and then pulled underneath a Peloton Tread+. Again, the video shows a very small child being distressed and physically injured over the course of 52 seconds, and does not provide necessary context beyond that information. As such, the link will not be included here in order to stress again how upsetting it may be for viewers.
"The importance of following Peloton's safety warnings and instructions is abundantly clear in the video that CPSC included in its unilateral press release," Peloton wrote in their investor announcement on the subject of the video described above.
The CPSC has advised owners to stop using their Tread+ entirely. At the very least, they advise keeping the machine unplugged and in a locked room away from pets and children when not in use. You can report Peloton Tread+ incidents to the CPSC on their site.
In their announcement, Peloton expressed disappointment in the CPSC's apparent unwillingness to discuss their findings with the company before they issued their urgent warning. Peloton also states that they will be adding warnings to their classes as well as offering other methods for keeping children safe such as scheduling runs during naptime, at night, when a partner can supervise the children, or while behind a baby gate.