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Peloton treadmill fine overview:
- Who: The Consumer Product Safety Commission has hit Peloton with a $19 million fine.
- Why: The commission said the fine comes after Peloton persistently distributed a treadmill with a deadly defect, even after a child died due to the product.
- Where: The Peloton treadmill fine was handed down in the United States.
The Consumer Product Safety Commision (CPSC) has approved a $19 million civil fine against Peloton, after it sold treadmills with a deadly defect that killed a 6-year-old.
The commission announced the penalty on its website Jan. 5, calling it a “leap forward” in its bipartisan plan to protect consumers by “enforcing the law and deterring corporate misconduct.”
The CPSC said it had unanimously approved a $19.065 million civil penalty against exercise machine manufacturer Peloton for keeping “vital safety information” secret and for distributing recalled products with a lethal defect.
“This is larger than the maximum civil penalty allowed by law for a single violation because Peloton committed two distinct violations by both failing to report incidents and selling recalled units,” the notice says.
One of the largest civil penalties in CPSC history
The CPSC said Peloton’s conduct had called for one of the largest civil penalties in the commission’s history.
It said that evidence indicated that, for years, Peloton knew from consumer reports that its treadmills could grab and pull kids and objects under the rear of the Tread+ treadmill, allowing for serious or fatal injuries.
As incidents mounted, the company reportedly kept CPSC in the dark by failing to report them, preventing the agency from protecting the public.
“It took tragedy striking for Peloton to act: on March 3, 2021, a 6-year-old child died after being pulled under the rear of the Tread+ treadmill,” the CPSC said.
“Had Peloton reported incidents on time, this child might still be alive today.”
By the time Peloton filed a report to CPSC following that event, over 150 incidents were known to the company, the commission said.
Even after the recall, the company reportedly continued to distribute units of the recalled Tread+ treadmill in violation of the recall agreement, the commission said.
What do you think of this penalty against Peloton? Let us know in the comments.
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