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Statement of Chair Alexander Hoehn-Saric on Vote to Approve $19.065M Settlement Agreement with Peloton Interactive, Inc

January 05, 2023

When a company continues to sell dangerous products that they know can cause serious injury or death, it must be held accountable. On December 28, 2022, the Consumer Product Safety Commission (CPSC) approved a civil penalty settlement with Peloton Interactive, Inc. (Peloton) that does just that. The settlement would require Peloton to pay a fine of more than $19 million and to take other remedial actions designed to protect consumers in the future.

I am pleased that my fellow Commissioners joined me to unanimously approve the proposed settlement agreement with Peloton Interactive, Inc. to resolve charges that Peloton failed to report that its Tread+ treadmill created an unreasonable risk of serious injury or death or had a defect which could create a substantial product hazard. Further, Peloton unlawfully distributed its Tread+ treadmills from May to August of 2021 after the firm had been informed of the Commission’s approval of a voluntary corrective action plan.  

By acting with one voice, the CPSC sends a loud and clear warning to companies who continue to sell dangerous products that they know can cause serious injury or death. In Peloton’s case, despite becoming aware of more than 150 reported incidents of persons, pets and/or objects being pulled under the rear of the Tread+ treadmill it was not until after receiving notice that a six-year-old child had died after being entrapped under the rear of the treadmill that Peloton reported these incidents to the CPSC. By failing to report these incidents to the Commission immediately, Peloton not only violated the Consumer Product Safety Act, but also consumers’ trust.  

This settlement demonstrates CPSC’s commitment to hold companies accountable when they put the public at risk and consumers should look forward to a safer marketplace for all. I thank CPSC’s staff who worked to identify and address the product hazard and advance this settlement on behalf of consumers.

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