$34 Billion Fitness Giant, Peloton, Loses its Weekslong Battle With Safety Regulators

 Posted on May 06, 2021 in Product Liability

Chicago defective products attorney Peloton treadmill recallBy Shawn Kasserman

After weeks of resistance, more than 40 injured children, and a precipitous stock decline, Peloton has followed the advice of safety regulators and advocacy groups and recalled more than 125,000 units of its latest treadmill model, Tread+. It is now offering full refunds for the $4,295 machines, effective until November 6, 2022.

The move comes seven weeks after Peloton’s CEO, John Foley, announced that he had learned of one death and a “small handful of incidents” related to children getting trapped underneath the newly released treadmill.

Federal regulators quickly responded to CEO Foley’s announcement and learned that the “small handful of incidents” actually numbered around 40, including the death of a 6-year-old. On April 17, 2021, the Consumer Product Safety Commission, chaired by Congresswoman Jan Schakowsky (D-Ill), issued a report that admonished consumers to stop purchasing the treadmills altogether. But instead of recalling the treadmills, Peloton held its ground for weeks, accusing the CPSC of issuing false and misleading reports. As Peloton continued to fight, children continued to get hurt, and the company’s stock continued to drop.

After several weeks of resistance, more injured children, and a 16% dip in its stock price, Peloton agreed to recall all 125,000 units of its Tread+ model. CEO Foley issued a statement apologizing for Peloton’s obstructionist conduct during the safety investigation: “I want to be clear, Peloton made a mistake in our initial response to the Consumer Product Safety Commission’s request that we recall Tread+. We should have engaged more productively with them from the outset. For that, I apologize.”

Product recalls like these save the lives of countless children, and they would not be possible without the valiant effort of consumer groups like Kids In Danger (“KID”). KID is a nonprofit organization that is dedicated to protecting children by advocating for product safety. Its mission is to save the lives of children by promoting transparency and ensuring accountability through the development of safer products, improving education, and providing strong advocacy for children. KID was among the several advocacy groups that paired with the CPSC and congressional representatives to call on Peloton to recall the Tread+.

Attorney Shawn Kasserman is a proud supporter of KID and has a documented history of advocating for safe product development for children. In two separate multimillion-dollar product liability cases, Shawn represented families after their children's portable cribs collapsed, killing the children. In all cases related to unsafe children’s products, Shawn has refused to settle “confidentially” so as to promote public awareness and to encourage safer product development. If you or anyone you know has a child that has suffered an injury or death due to a negligently designed product, do not hesitate to reach out to the Chicago product liability attorneys at Tomasik Kotin Kasserman by calling 312-605-8800 for a free consultation.


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