Peloton Subpoenaed by DOJ and DHS Over Treadmill Injuries

Peloton Faces DOJ and DHS Subpoenas Amidst Treadmill Investigations

Peloton announced the forthcoming launch of a more affordable Tread model on Tuesday. This announcement preceded the release of a less-than-favorable earnings report and followed the recalls of both of its treadmill lines.

The connected fitness firm disclosed in a Securities and Exchange Commission (SEC) filing that it has received subpoenas from the U.S. Department of Justice and the Department of Homeland Security.

Investigations Focus on Injury Reporting

These subpoenas are connected to investigations concerning the company’s reporting practices related to injuries stemming from its treadmill products. This development suggests that the repercussions for Peloton extend beyond the reintroduction of one of its Tread products to the market.

According to the SEC filing, Peloton has chosen not to provide additional commentary regarding the ongoing investigations.

Previously, Peloton publicly disagreed with the U.S. Consumer Product Safety Commission (CPSC)’s initial recommendation to cease using its treadmill equipment. This dispute arose following an incident involving the Tread+, which resulted in the tragic death of a child.

At that time, Peloton expressed concern over the CPSC’s reporting and maintained that the Tread+ could be safely used if all provided warnings and safety guidelines were adhered to.

CPSC Findings and Recalls

In May, CEO John Foley issued an apology for the company’s initial resistance and pledged to collaborate with the CPSC on a recall effort.

The Commission documented over 70 incidents, including a case where a six-year-old child was fatally pulled under the rear of a treadmill. Furthermore, 72 reports were received detailing instances of adults, children, pets, and objects being drawn under the treadmill’s rear, with 29 of those reports involving injuries to children – ranging from abrasions to broken bones and lacerations.

Reinforced Screen for New Tread Model

The more budget-friendly Tread model was also subject to a separate issue involving the potential detachment of its touchscreen during operation, posing a risk of injury. The updated version of the device incorporates a strengthened screen to address this concern.

The recalls encompassed approximately 125,000 Tread+ systems and over 5,500 Treads that were released in a limited capacity.