Peloton says CPSC staff recommend civil penalties related to treadmill recall

Peloton Interactive Inc. said on Wednesday that officials at the US consumer safety regulator intend to recommend that the agency impose civil monetary penalties on the fitness equipment maker for recalling treadmills last year.

The fitness equipment maker, which has suffered an annual operating loss since its founding in 2012, suspended sales of its Tread+ machines in all markets last year and announced a costly recall following reports of multiple injuries and the death of a child in a car crash. accident.

Peloton said it was notified by the US Consumer Product Safety Commission in August that agency officials believe the company has failed to comply with statutory obligations under the Consumer Product Safety Act.

“While we disagree with agency staff, we are in ongoing confidential discussions with the CPSC.” The company said in a deferred annual filing with the US Securities and Exchange Commission.

CPSC did not immediately respond to a request for comment.

Shares of Peloton fell about 1% to $8.62 ahead of the call.

Following last year’s recall, several agencies, including the US Department of Justice, launched an investigation into the company. Those investigations are ongoing, Peloton said on Wednesday.

The company is in the middle of a restructuring plan to revive its sales, which have plummeted as people return to working out at the gym.

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