Peloton
- Peloton shares fell by nearly 8% early Monday after the US Consumer Product Safety Commission urged certain Tread+ owners to stop using the machine.
- The CPSC said it has learned of 39 incidents involving Tread+ including one death.
- Peloton said it has cooperated with the CPSC and that there's no reason to stop using Tread+.
- See more stories on Insider's business page.
Peleton shares slumped early Monday after a US products safety agency said certain owners of the company's Tread+ exercise machine should immediately stop using it as it investigates reports of injuries involving children including one death.
The US Consumer Product Safety Commission said in a statement Saturday that it is aware of 39 incidents related to the machine.
"CPSC staff believes the Peloton Tread+ poses serious risks to children for abrasions, fractures, and death," the agency said, adding that Tread+ users should stop using the machine if there are small children or pets at home.
A Peloton spokesperson told Insider on Sunday it had reported 39 incidents to the CPSC and 15 of those involved objects. One involved a pet and 23 involved children, the spokesperson said. Peloton, in a Saturday statement, hit back at the agency, saying it published a "misleading, inaccurate bulletin" on the safety of Tread+.
Shares of Peloton fell as much as 7.9% to $107 in premarket trading. Shares of the high-end equipment maker have more than doubled over the past 12 months.
"There is no reason to stop using the Tread+, as long as all warnings and safety instructions are followed. Children under 16 should never use the Tread+, and Members should keep children, pets, and objects away from the Tread+ at all times," said Peloton. Foley recommended that when the Tread+ is not in use that adults remove and store the safety key away from the machine to prevent it from operating.
Peloton's CEO John Foley on Sunday sent a note to Peloton members saying the company in March informed the CPSC that one child had died after falling under the machine and that it has been cooperative throughout the investigation. He said the company did not share personally identifiable information of certain members with the CPSC because they specifically requested Peloton not provide it to the agency.
He said at no time was Peloton trying to impede CPSC's investigation.
"While we are aware of only a small handful of incidents involving the Tread+ where children have been hurt, each one is devastating to all of us at Peloton, and our hearts go out to the families involved," said Foley.