The fitness tech company has been involved with Peloton Engines and recalls its treadmills after the news of one’s death broke, sending the company’s stock down seven months.
The move comes more than two weeks after the Federal Consumer Product Safety Commission, the federal protection agency, called for an end to the use of the Peloton treadmill with small children or pets following an investigation into the death of a child. There are 72 reports of adults, children, pets or objects found under the rear of the treadmill, the agency said.
Peloton had earlier backtracked on the CPSC’s initial warning, calling it “wrong and misleading” and saying anyone over the age of 16 could continue to use Trade +.
Pelton Chief Executive John Foley apologized on Wednesday, saying the company had “made a mistake in our initial response to withdraw our Trade + at the request of the Consumer Products Protection Commission.”
Foley added: “We should have been more productive with them from the beginning. I apologize for that. ”
Under an agreement with regulators, Peloton is voluntarily re-calling Trade + and Trade Treadmills and will offer full refunds to customers who wish to return their machines. Trade + sells for about, 4,300.
Owners are advised to stop using treadmills immediately. The CPC said Pelton was working on additional hardware modifications.
The deal, which required Peloton to stop selling and distributing treadmills in the United States, was “the result of several weeks of intense negotiations and efforts, concluding a cooperative agreement that I believe serves the best interests of Peloton and its customers.” , The chair in charge of the CPSC, according to Robert Adler.
Foley said the company is committed to working with CPSC to set new industry safety standards for treadmills. We have a desire and a responsibility to be an industry leader in product protection. ”
Peloton, known for its station bikes and indoor cycling classes, launched its treadmill in 2018. It announced last year that it was launching a cheaper version of its treadmill, the treadmill, with a retail price of about 500 2,500.
Shares of Peloton fell 10 percent to $ 87.08, hitting a record high in September.