In a major reversal, Peloton announced Wednesday, May 5, 2021, voluntary recalls of both its Tread+ and Tread treadmill machines over safety concerns.
Its shares tanked more than 8% on the news.
The company is advising customers who already have the products to immediately stop using it and contact Peloton for a full refund or another qualified remedy.
The U.S. Consumer Product Safety Commission had previously warned about Peloton’s Tread+ product last month after one child died in an incident involving the machine and there were dozens of other reported injuries.
But Peloton pushed back on the recommended recall at the time and told customers there was no reason to stop using its treadmills.
“I want to be clear, Peloton made a mistake in our initial response to the Consumer Product Safety Commission’s request that we recall the Tread+,” CEO John Foley said in a statement Wednesday. “We should have engaged more productively with them from the outset. For that, I apologize.”
Peloton also said it will work with the CPSC to set new industry safety standards for treadmills.
The full statement can be found here.