Peloton in talks with CPSC on treadmill warning
Apr. 17, 2021 8:53 AM ETPeloton Interactive, Inc. (PTON)PTONBy: Clark Schultz, SA News Editor33 Comments
- The Consumer Product Safety Commission could issue a consumer alert on Peloton Interactive' (NASDAQ:PTON) Tread Plus treadmill as early as today, according to reports.
- The CPSC began an investigation on the product after it was involved with the death of a child last month.
- Sources tell the Washington Post that the CPSC is aware of dozens of incidents involving Peloton’s treadmills, involving pets or exercise balls.
- Peloton is challenging any recall request and is in talks with the agency.
- Peloton statement: "We are disappointed that the CPSC is mischaracterizing the situation. The Peloton Tread+ is safe for use at home when operated as directed and in accordance with our warnings and safety instructions. As a reminder, the Tread+ is not for children under 16 and children, pets, and objects need to be kept away from the Tread+ at all times. Peloton is 100% committed to the safety of our Members and we will always be open to working with the CPSC to implement impactful safety measures."
- Shares of Peloton are down 23% YTD as investors have backed away from some pandemic favorites. PTON is still up more than 200% over the last 52 weeks.