Peloton Treadmills Now Require Additional $39 Monthly Membership Following Safety Recall

Owners of Peloton’s high-end treadmills have been left with no option but to fork over more cash, after the company recently disabled what was a free running feature amid issues pertaining to recent safety recalls.

An onslaught of Peloton Tread+ users flooded social media with complaints that the $4,295 treadmill machine no longer offered its free “Just Run” setting, forcing users to pay a $39 monthly membership to use the exercise equipment. Previously, the feature was included at no-cost, allowing users to forego the company’s monthly membership program. However, due to a recent software update stemming from a recall issued last month, those that didn’t want their already pricey machine to turn into an oversized paperweight had no choice but to pay up for the subscription.

The software update was related to a recall issued in May, that stemmed from numerous safety incidents surrounding Peloton’s Tread+ running machine, including injuries to children and pets, as well as one death. A new update to the device included a locking feature that addresses the safety issues, but it also inadvertently obstructed the “Just Run” feature.

In response, a Peloton spokesperson has told CNBC that affected Tread+ customers will be offered a three-month free membership, while the company works on returning the free feature. Although some unsatisfied customers have allegedly threatened legal action due to sudden loss of the free component, Peloton has offered full refunds as per the conditions of the recall. The exercise equipment company anticipates the latest recall will set it back by about $165 million, or approximately three times its total profits for 2020.

Information for this briefing was found via Business Insider and CNBC. 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.

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