Shares of Peloton Interactive Inc. slumped by nearly 10% on Monday, after a US regulatory agency urged consumers to cease using the Tread+ machine, after multiple reports of injuries involving young children and pets surfaced.
The U.S. Consumer Product Safety Commission revealed on Saturday it had received multiple reports of children and pets being pulled and trapped underneath the Peloton Tread+ treadmill, resulting in significant injuries and even one death. As a result, the regulatory agency urged consumers to stop using the exercise equipment if they have children or pets in their home.
In response to allegations, Peloton said it as “concerned” about the agency’s warning, noting it was “inaccurate and misleading.” The exercise equipment company said Tread+ is safe to use as long as children and pets are kept out of reach of the treadmill at all times, and the safety key is removed when not in use. However, the safety commission noted that there has been one incident where a young child was pulled underneath the treadmill’s rollers while the machine was being used by the parent, suggesting that the danger still persists even while an adult is present.
Peloton is widely known for its stationary exercise bikes, but introduced the Tread+ treadmill in the US in 2018 at a hefty price tag of over US$4,000. The demand for at-home exercise equipment skyrocketed during the pandemic, as Covid-19 restrictions closed fitness facilities and left gym-goers in search of alternatives.
Information for this briefing was found via the U.S. Consumer Product Safety Commission. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.