Peloton Fined $19 Million After Fatal Treadmill Accident
Peloton will pay $19 million to the U.S. Consumer Product Safety Commission after the company's treadmills led to the death of a child in 2021.
According to a press release by the commission, Peloton had "failed to immediately report to CPSC, as required by law, that its Tread+ treadmill contained a defect that could create a substantial product hazard and created an unreasonable risk of serious injury to consumers."
CPSC had warned consumers of injuries caused by Peloton's Tread+ in April 2021, which amounted to 39 incidents and one death at the time. Commissioners say that Peloton had received incident reports as early as December 2018 that were not immediately reported.
The incidents involve objects, pets, and children being pulled under the rear of the treadmill leading to broken bones for some as well as the tragic death of a six-year-old child. Following the child's death, Peloton recalled its line of treadmills but continued to distribute them, according to CPSC.
In a statement, commission members said that "Had Peloton reported incidents on time, this child might still be alive today."
The statement continued: "By the time Peloton filed a report to CPSC following that event, over 150 incidents were known to the company."
The company was also accused of distributing Tread+ units after the published recall.
As part of the settlement, Peloton will also be required to maintain an "enhanced compliance safety program."
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