Peleton Recalls Devices After Numerous Accidents

Peloton Interactive has recalled its treadmill products and plans to stop sales after a child died, and over 70 safety incidents were recorded. This clashes with their earlier stance on their devices being totally safe if used correctly.

The two treadmill models recalled are the Tread and Tread+, according to a joint statement by the company and the U.S. Consumer Product Safety Commission on Wednesday. Consumers who already have purchased either of the devices are to stop use immediately and contact the company for a full refund. 

The Tread+, which is selling for over $4,200, has been involved in a series of reported accidents. This led to an investigation by regulators, after which the company is recalling the device as the screen can loosen and fall, thereby harming users.

Peloton’s total annual revenue doubled during the pandemic to almost $2 billion. The company is most famous for its stationary bike, which has a touch screen where users can stream live workout sessions. However, over the past months, the company has revealed how the Tread model, which sells for $2,500 has surpassed sales expectations and has the potential to sell even more than the original Peleton bike.

The company has given from now until November 2022 full refunds on Peleton bikes, after that, only half refunds will be offered to customers - with the option of hardware fixes for those who do not want refunds.

The company has also come up with several ways to remedy the problem, some of these involve a kind of software update that will require a code to be entered before using the machine and a repair program for the loose screens on the Tread model.

Recently, a child was pulled under a Tread+ model, resulting in his death. The company offered condolences and offered to help buyers set up their devices in a room that is out of reach of children.

The US safety commission has disclosed that there have been other reports, about 72, of children, adults, and even pets, being pulled under a Peleton treadmill. Children alone made up about half of the accidents' stats.

This new development sharply contrasts with the company's earlier stance. Less than a month ago, Peleton said there was no reason to not use their devices as long as safety measures are observed, calling the safety commission's warnings misleading and inaccurate.

On Wednesday, however, John Foley, the company's CEO apologized for not heeding the warnings. 

He said, “Peloton made a mistake in our initial response to the Consumer Product Safety Commission’s request that we recall the Tread+. We should have engaged more productively with them from the outset. For that, I apologize.”

Peloton stock (PTON) reached its highest price of $171.09 a while ago when the pandemic was in full motion and people are at home a lot more. Now that the world is opening up in America and now that Peloton is having issues with its equipment, the stock has sold off to $83.81 cent as of this morning.

The thread recall dealt a big blow to peloton’s popularity and its businesses. Will this last? Visit us daily for more news on this issue.