NEW YORK — Peloton Interactive will pay more than $19 million in civil penalties to resolve charges of failing to immediately report entrapment hazards and distributing a treadmill recalled after a child died.
The Consumer Product Safety Commission (CPSC) said the $19,065,000 settlement resolves charges that Peloton knowingly failed to immediately report that its Tread+ treadmill contained a defect that could create a substantial product hazard.
This is larger than the maximum civil penalty allowed by law for a single violation because Peloton committed two distinct violations by both failing to report incidents and selling recalled units.CPSC commissioner Richard Trumka
The treadmill was recalled in 2021 after the death of a 6-year-old child and dozens of reported injuries. The recall happened months after the CPSC warned people about the treadmill’s danger.
The CPSC said it has received multiple reports of children getting trapped, pinned, and pulled under the rear roller of the product. At least one incident happened while a parent was running on the treadmill.
The commission shared a video showing the danger to children. The video may be disturbing to some viewers.
By the time Peloton filed a report, the CPSC said there were more than 150 reports of people, pets, and/or objects being pulled under the rear of the Tread+ treadmill, including the death of a child and 13 injuries, including broken bones, lacerations, abrasions and friction burns.
Companies are required by law to notify the CPSC if there is information supporting that a product contains a defect or creates an unreasonable risk of serious injury or death.
After the recall, the CPSC said Peloton continued to distribute the treadmill using Peloton personnel and through third-party delivery firms.
In addition to the $19,065,000 civil penalty, the CPSC said the settlement agreement requires Peloton to maintain an enhanced compliance program and system of internal controls and procedures designed to ensure compliance.
This settlement demonstrates CPSC’s commitment to hold companies accountable when they put the public at risk and consumers should look forward to a safer marketplace for all. I thank CPSC’s staff who worked to identify and address the product hazard and advance this settlement on behalf of consumers.CPSC commissioner Alexander Hoehn-Saric
In the settlement, Peloton does not admit that it violated the CPSA or any other law.