Peloton is Recalling All of its Treadmills For This Reason

Many Peloton fans and users may have woken up concerned to learn that the company has recalled all of its treadmills after reports of injuries and even one death of a child.

The company announced on Wednesday the voluntary recalls of both its Tread+ and Tread treadmill machines due to safety concerns. The recall affects about 125,000 Tread+ machines and roughly 1,050 Tread products in the United States.

Peloton is advising its customers who already have the products to immediately stop using them and to contact the company for a full refund.

Peloton CEO John Foley has apologized for not cooperating with the U.S. Consumer Product Safety Commission sooner. The company’s announcement on Wednesday comes after weeks of discussions with the U.S. agency.

According to the agency, Peloton’s treadmills are designed differently than its peers, with “an unusual belt design that uses individual rigid rubberized slats or treads that are interlocked and ride on a rail.” This is instead of a thinner continuous belt. The machines also have a large gap between the floor and the belt of the Tread+, leaving room for things to wiggle their way under.

“I want to be clear, Peloton made a mistake in our initial response to the Consumer Product Safety Commission’s request that we recall the Tread+,” CEO John Foley said in a statement. “We should have engaged more productively with them from the outset. For that, I apologize.”
Peloton shares tumbled more than 12% on the news.

“The CPSC took a strong and principled stance for safety, and clearly that’s what made Peloton come to the table and agree to offer a full refund,” said William Wallace, Consumer Reports’ manager of safety policy, in a release. “It shouldn’t have required so much time and effort to get this product recalled.”

The nonprofit consumer watchdog group initially called Peloton’s response, or lack there of, “outrageous.”

The company is working on a repair that will be offered to treadmill owners in the coming weeks.

Peloton reported in 2020 revenue of $1.8 billion and is set to report earnings after the market close on Thursday.

The company’s stock is down about 40% YTD.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.