Peloton extends refund period for recalled treadmill another year

Peloton Tread+ treadmill users have another year to get a refund for the product, which was recalled last year, the U.S. Consumer Product Commission and Peloton said on Tuesday.

The Tread+ was taken off the market in May 2021 after reports of children and pets getting pulled underneath the exercise equipment, causing injuries that killed one child. 

Peloton said in May it was working on a fix, but in the meantime the fitness company is extending the refund window for Tread+ owners from next month to November 6, 2023. 

"Peloton is working on a rear guard that would address the hazard at the back of the treadmill but no repair has been approved to date, the CPSC said in a statement. People should "immediately stop using the recalled Tread+ treadmills," the agency reiterated. 

In addition to the reported death, Peloton has received 335 incident reports, including 87 involving injuries, related to the Tread+, which cost around $4,300 when it was still available for purchase. 

Mounting financial losses

In its annual earnings report, Peloton in September disclosed that the CPSC "believes we failed to meet our statutory obligations under the Consumer Product Safety Act and intends to seek civil monetary penalties." The company said it disagreed with the commission's findings, but is in discussions with the agency's staff.

Peloton's less pricey treadmill, the Tread, was also recalled last year because of a glitch that caused the product's touchscreen to loosen and in some cases fall off. 

Peloton, whose sales jumped in the early days of the pandemic as many Americans retreated indoors and bought fitness gear, has struggled of late. Over the last 12 months ending in September the company's operational losses swelled to $1.2 billion, while its revenue fell sharply. 

Peloton shares also have tumbled 90% this year, while the company has announced more than 1,000 layoffs and shuttered stores in a bid to cut costs.