Peloton Refuses to Recall Treadmill and Stock Plummets

Peloton Refuses to Recall Treadmill and Stock Plummets

The emerging battle between the Consumer Product Safety Commission and the fitness company Peloton is taking its toll on the company’s stock.

But, Peloton is bucking the CPSC’s actions and is refusing to recall the treadmill.

On Saturday, the CPSC issued a warning to consumers about the danger of the popular Peloton Tread+ exercise machine after multiple incidents of small children and a pet being injured beneath the machines.

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The company has been a darling of the pandemic with a series of home fitness products and online coaching.

But the battle hit Peloton’s stock — it dropped 7.28% and has fallen from a 52-week high of $171 a share to $107 — a 37% decline.

The Commission found that public health and safety required "this notice to warn the public quickly of the hazard."

The urgent warning comes less than a month after Peloton itself released news of a child’s death by a Peloton Tread+ and CPSC’s announcement of an investigation into that incident. There are nearly 40 other reports of injuries as of Saturday.

The CPSC was forced to issue a subpoena to the company to get the name of the family whose child died in an incident with the treadmill.

According to the Wall Street Journal, “Peloton initially refused to identify to the commission the family of the child who was killed until the company was compelled to do so by a subpoena. Mr. [John] Foley, the Peloton CEO, has defended the company’s decision to withhold that information. ‘Government agencies shouldn’t have unfettered access to consumers’ private information, and I am proud that we took a stand to protect these Members’ privacy,’ he said in Saturday’s letter [to customers].”