At the peak of the COVID-19 pandemic, it became increasingly important for people to keep fit and healthy. However, many people resorted to home workouts with equipment because of the restrictions on movement and social gathering. One famous brand is Peloton Interactive Inc., an exercise and equipment company based in New York City with over 2 million members worldwide.
Peloton Interactive Inc., famously known as Peloton, is best known for its stationary exercise bikes and treadmills (tread and tread+) that allows users and monthly subscribers to participate remotely in classes such as strength training, walking, running, mediation, yoga, cardio exercises, cycling, stretching and many more via a virtual class at affordable rates. The best feature of the digitalized exercise equipment is its touchscreen that allows for video chats between friends and its compatibility with different devices.
In April 2021, the U.S. Consumer Product Safety Commission (CPSC) raised concerns about the use of treadmills. It warned consumers about the dangers of Peloton treadmill exercise equipment around pets and children. The agency made the caution report after over thirty-nine incidents of injury, and the death of a child resulted from using the equipment and advised that the equipment be kept in a locked room and out of reach.
With a graphic video of a child getting stuck under the treadmill, the regulatory agency said, “the design of Peloton’s treadmills with an unusual belt design that uses individual rigid rubberized slats or treads that are interlocked and ride on a rail and a large gap between the floor and the belt of the Tread+, leaves room for things to wiggle their way under.”
In a counter-statement, Peloton’s management debunked the agency’s claim as inaccurate. There was no reason for consumers to stop using the treadmill if they adhere strictly to the safety instructions. However, on May 5, the company announced a voluntary recall of its treadmill models over the safety concerns previously raised by the U.S. Consumer Product Safety Commission.
In a statement, the CEO of Peloton, John Foley, apologized for not acting more quickly after reports of injuries by consumers and warnings by the consumer agency. “I want to be very clear; 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 productively with them from the outset. For that, I apologize,” he shared.
The recall of the products affects over 123,000 treadmill products as the company advised customers to stop using the treadmill products immediately and seek a full refund or other qualities. The announcement had a significant impact on Peloton’s shares as it went down a whopping 15%, wiping $4.1 billion off the company’s market value.
Before Peloton’s safety hazards were made public in March, the company was considered one of the biggest home-workout success stories with high sales during the pandemic.
Learn more about Peloton Interactive Inc. and the available products by visiting its official website.