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Wednesday, October 8, 2025

Peloton Fined $19M For Failing to Immediately Report Defects

  • In early 2021, a child died in an accident involving a Peloton treadmill.
  • There were more than 150 reports of accidents before Peloton filed a report with the CPSC.
Peloton
Peloton

The Peloton cycle continues.

The connected fitness company agreed to pay a $19 million civil penalty for failing to inform the Consumer Product Safety Commission of treadmill defects and selling previously recalled products, the CPSC announced Thursday.

In early 2021, a child died in an accident involving a Peloton treadmill after more than a dozen of other injuries reported to Peloton beginning in December 2018.

“By the time Peloton filed a report with the Commission, there were more than 150 reports of people, pets, and/or objects being pulled under the rear of the Tread+ treadmill,” the CPSC’s statement reads.

The company recalled roughly 125,000 of its Tread+ brand treadmills in May 2021.

  • Peloton initially refused to recall the product despite an “urgent request” by the CPSC in April. 
  • The CPSC reported that after the recall announcement, “Peloton knowingly distributed in commerce 38 Tread+ recalled treadmills using Peloton personnel and through third-party delivery firms.”

In addition to the civil penalty, Peloton will also be required to “maintain an enhanced compliance program and system of internal controls and procedures” and has agreed to file annual reports of its compliance program for five years.

More Speed Bumps

The announcement is just another hit to the fitness giant, which made four rounds of layoffs in 2022. 

Peloton reported $616.5 million in first-quarter revenue — down from $805 million year-over-year and failing to meet its own revenue expectations.

The company has announced multiple turnaround strategies, including refurbished bikes, new brick-and-mortar deals, a rowing machine, and personnel switch-ups.

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