Struggling fitness gear Company Peloton has been hit with a $28M fine for knowingly failing to report problems with their products that could seriously injure users.

The issue also contributed to the death of a child.

The US Consumer Product Safety Commission (CPSC) claims the company continued to sell product despite knowing that some customers had been seriously injured using their gear.

The CPS even went as far as claiming that had Peloton reported the issue the child would be alive today.

In their statement issued today in the USA the Commission said that Peloton has agreed to pay a civil penalty to settle the issue.

As a result, the fine will resolve charges that Peloton continued to sell 38 Tread Plus units after the recall in violation of the Consumer Product Safety Act.

It was only after intervention that Peloton recalled both of its treadmills — the Tread and Tread Plus — in 2021.

While the Tread’s issue was a wobbly screen, the more premium Tread Plus caused multiple reports of injuries and, in one instance, the death of a small child.

Because of the Tread Plus’ poor design including slatted belt and raised deck children, adults, and pets were being flicked under the 270-kilo machine.

The Company has since discontinued the Tread Plus.

At one stage there were more than 150 reports of people, pets, and/or objects being pulled under the rear of the Tread+ treadmill,” the CPSC said in a statement, noting that Peloton first started receiving reports of injuries in December 2018.

“It took tragedy striking for Peloton to act,” CPSC commissioner Richard Trumka wrote in a statement, referring to the death of a six-year-old. “

Had Peloton reported incidents on time, this child might still be alive today.”

In addition to the penalty, Peloton is now required to maintain an “enhanced compliance program and system of internal controls and procedures” to make sure it doesn’t run afoul of the Consumer Product Safety Act. The company is also required to file annual reports regarding its compliance efforts for the next five years.

Since the incidents that they have been fined for the US Company has established an operation in Australia,

Shortly afterwards they went through four rounds of layoffs and numerous gaffes, while failing to assure investors about its turnaround plans.

Despite the dire financials, Peloton is still limping along opening a showroom in Martin Place Sydney, currently {Peloton shares are down 76% for the year. Earlier today the shares fell another 2.9%.