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Peloton has accepted to pay $19 million in fines for not promptly reporting treadmill dangers and distributing treadmills recalled by the Consumer Products Safety Commission.
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The fine is a result of allegations that the company "knowingly failed to immediately report" to the US regulator any issues it discovered with their Tread+ treadmill, the company said in an announcement.
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The civil penalty is also a settlement of allegations that Peloton sold treadmills that were recalled that were not in compliance with the Consumer Product Safety Act.
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The commission claimed it issued "one of the largest civil penalties in our history" due in part to an organization "distributing recalled products with a lethal defect."
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On May 20, 2021, Peloton recalled about 15,000 Tread+ model treadmills in the wake of an accident that killed a 6-year-old child.
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There were also dozens of reports of injuries attributed to the treadmills.
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However, it initially refused to accept the "urgent request" by CPSC in April. The kind of decline that occurs is very rare.
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In May, Chief Executive Officer John Foley said Peloton "made an error in our initial response to the request of the CPSC.