Peloton has agreed to pay a $19 million fine for failing to promptly report treadmill hazards and for distributing recalled treadmills, the Consumer Products Safety Commission said.
The fine resolves charges that the company had “knowingly failed to immediately report” to the US regulator defects with its Tread+ treadmill, it said in a statement. The civil penalty also settles charges that Peloton distributed recalled treadmills in violation of the Consumer Product Safety Act. The commission said it had levied “one of the largest civil penalties in our history” due, in part, to the company “distributing recalled products with a lethal defect.
We should’ve engage more productively with them from the outset. For that I apologize.” The fine, according to the commission, reflected that initial refusal. Peloton had received reports of “entrapment” by its Tread+ treadmills as early as 2018, it said. “By the time Peloton filed a report with the Commission there were more than 150 reports of people, pets, and/or objects being pulled under the rear of the Tread+ treadmill,” according to the commission.
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