Earlier this year, Peloton recalled its Tread+ treadmill after several reports of injuries.Photo Credit: Peloton
After dozens of injury reports caused Peloton to recall its treadmill series, it still hasn’t gotten out of the predicament. Peloton revealed in a statement that multiple federal agencies are investigating the company. Submitted to the US Securities and Exchange Commission on Friday.
The Department of Justice and Homeland Security subpoenaed the fitness equipment manufacturer to learn how to report injuries related to its products. The US Securities and Exchange Commission also launched an investigation into public disclosures related to Peloton’s Tread+ machine, which is expensive, priced at more than $4,000 each.
Peloton declined to comment, and a company spokesperson said he could not comment on the ongoing litigation.
In May, Peloton recalled its Tread and Tread+ machines, which was nearly a month after the Consumer Product Safety Commission (CPSC) urged the company to stop the treadmill after multiple injuries and one death.
Most of the complaints are related to Peloton’s Tread+ machine, fearing that children and pets will be pulled behind the treadmill off the ground.
In March, John Foley, CEO of Peloton Revealed that a six-year-old child is dead In an accident related to a treadmill.This prompted the US Consumer Product Safety Commission to investigate and found 70+ reports Related to Tread+, including 29 reports of child injuries.
In addition, the company has also recalled its cheaper Tread series due to concerns that the screen will fall off when people are running.The US Consumer Product Safety Commission has noticed six incidents of treadmill screens falling off, but no injuries have been reported in the United States
Peloton plans to start selling its Tread machine again next week after making some safety improvements, but did not disclose when it will re-launch its Tread+.
This fitness equipment company has surged in sales after the pandemic began, but recently saw Its stock price plummeted After slashing the price of its stationary bicycles and lowering its sales forecast to US$800 million.
