Peloton agrees to pay a $19 million fine for delay in disclosing treadmill defects

Peloton Interactive has agreed to pay a $19 million fine for failing to promptly notify regulators of a known defect in its Tread+ exercise machines that could cause serious injury, according to the U.S. Consumer Product Safety Commission.

The civil penalty also settles charges that the company knowingly distributed the recalled treadmills, the federal agency said in a news release Thursday.

Peloton had received more than 150 reports of incidents involving people, pets or objects being pulled under and entrapped at the rear of the treadmill, by the time the company informed regulators, the CPSC said.

Those reported incidents included the death of a child and 13 injuries, including broken bones, lacerations, abrasions and friction burns, the agency said.

After initial resistance from the fitness company, Peloton and the CPSC jointly announced the recall of the Tread+ treadmill in May 2021.

On top of the $19,065,000 penalty, the settlement agreement requires Peloton to "maintain an enhanced compliance program and system of internal controls and procedures designed to ensure compliance" with the Consumer Product Safety Act. For five years, Peloton must also file annual reports regarding its compliance program, the CPSC said.

Peloton said in a statement that it "remains deeply committed to the safety and well-being of our Members" and that it looks forward to working with the CPSC to further enhance member safety. The company said it continues to seek the agency's approval of a rear guard on its Tread+ model that would improve its safety features.