Peloton
Peloton Interactive plunged as much as 10% on Wednesday after announcing it will voluntarily recall two versions of its treadmills. The decision comes in cooperation with the US Consumer Product Safety Commission following reports of injuries and one death.
Customers who have purchased either the Tread+ or the Tread treadmill are urged to stop using them and contact Peloton for a full refund, according to a joint statement issued by the company and the CPSC. Each machine costs about $4,300.
The agency on April 17 warned consumers about the Tread+. At that point, the agency was aware of 39 incidents, as well as one death. The agency on the same day even released a video of a child being sucked under the machine. To date, the accidents tally to more than 70.
The decision comes after Peloton initially pushed back on regulatory warnings regarding the safety of its treadmills.
"Peloton made a mistake in our initial response to the Consumer Product Safety Commission's request that we recall the Tread+," Peloton CEO John Foley said In a statement. "We should have engaged more productively with them from the outset. For that, I apologize."
The agreement between the two parties was borne out of weeks of "intense" negotiation and effort, according to Robert Adler, acting chairman of the CPSC.
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