Risk & Compliance

Feds Investigating Peloton Safety Disclosures

The company says the SEC and other agencies are investigating its reporting of injuries associated with its Tread Plus treadmill.
Matthew HellerAugust 30, 2021

Peloton has disclosed that three government agencies are investigating its reporting of safety hazards associated with exercise treadmills it recalled in May.

The home fitness company initially rejected a request from the U.S. Consumer Product Safety Commission to recall its Tread Plus product amid reports that a child was killed in an accident involving the equipment and dozens of other users had suffered injuries.

In a regulatory filing last week, Peloton said the CPSC was continuing to investigate the matter and that it was also subject to investigations by the Department of Justice, Department of Homeland Security, and the Securities and Exchange Commission.

The DOJ and DHS “have subpoenaed us for documents and other information related to our reporting of the injuries associated with our products and the SEC is also investigating our public disclosures concerning these matters,” the filing said.

The CPSC warned consumers about the Tread Plus in April, saying its staff believed it “poses serious risks to children for abrasions, fractures, and death. In light of multiple reports of children becoming entrapped, pinned, and pulled under the rear roller of the product CPSC urges consumers with children at home to stop using the product immediately.”

As Gizmodo reports, Peloton was “initially hesitant to publicly acknowledge the apparent dangers” of the treadmills, calling the CPSC’s announcement “inaccurate and misleading” and insisting that “There is no reason to stop using the Tread Plus, as long as all warnings and safety instructions are followed.”

The company subsequently recalled 125,000 of its treadmill units a month later.

“I want to be clear, Peloton made a mistake in our initial response to the CPSC’s request,” CEO John Foley said at the time. “We should have engaged more productively with them from the outset. For that, I apologize.”