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Peloton Treadmill Recall Hits at Worst Possible Time for Company

Exercise company Peloton had been having a banner year. A lengthy series of lockdowns were surprisingly great for sales of home exercise equipment. Peloton’s interactive exercise streams were uniquely well-positioned to bring in the big bucks during last year’s bizarre economic moment.

However, a considerable amount of investor faith has been shaken following the company’s announcement to recall their Tread+ exercise machine voluntarily. The treadmill in question has been the cause of one accidental death in a child and nearly 40 other safety incidents involving children. At issue is the treadmill’s odd design, which has the belt looping around to face the floor on the back end.

Recall Hits Bottom Line

The voluntary recall came just one day ahead of the company’s earnings call with investors. A staggering blow for Peloton has seen its stock price dip 14.5 percent since the Wednesday announcement. Initially, after the Consumer Product Safety Commission announced that it was recommended parents discontinue use of the Tread+ in light of the accidents, Peloton resisted the calls for a recall.

The company’s first statement regarding the safety of the Tread+ was essentially a reminder that consumers should always follow all of the posted safety regulations regarding the exercise equipment. However, Wednesday, Peloton CEO John Foley issued an apology following the company’s acceptance of a voluntary recall.

“I want to be clear, Peloton made a mistake in our initial response to the Consumer Product Safety Commission’s request that we recall the Tread+,” stated the CEO. “We should have engaged more productively with them from the outset. For that, I apologize.”

Child Safety

In the meantime, if you have a Tread+ treadmill in your house, there are steps you can take to make it safer for children. Firstly, you should leave the key out of the machine while it’s not in use, especially if there are kids around. Secondly, you must keep the equipment in a room that can be locked so that children can’t get near it when you’re not around to supervise them.

Finally, it’s critically important that you have someone supervising your kids when you’re using the machine or that you’ve otherwise locked the door so they can’t get in while it’s in use. During exercise, keep an eye out for your kids who might have gotten too close to the machine. An injury could happen by being pulled under the treadmill.