Peloton Announces Recalls

After resisting action despite consumer product warnings, Peloton has conceded and is recalling two models of its treadmills. One child died and more than 70 people were injured, so the Consumer Product Safety Commission (CPSC) recommended the recalls a month ago.

In the company statement, CEO John Foley admitted the mistake:

The decision to recall both products was the right thing to do for Peloton’s Members and their families. 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+. We should have engaged more productively with them from the outset. For that, I apologize. Today’s announcement reflects our recognition that, by working closely with the CPSC, we can increase safety awareness for our Members. We believe strongly in the future of at-home connected fitness and are committed to work with the CPSC to set new industry safety standards for treadmills. We have a desire and a responsibility to be an industry leader in product safety.

The CPSC said the decision came after “weeks of intense negotiation and effort.” Peloton will suffer financially: the company has stopped selling the treads and is offering a full refund of more than $4,000 for the products. But executives may have spared themselves and the brand some reputation damage if they had acted earlier.