Peloton’s Stocks Plummet After Safety Concerns Increase
The nightmare run for treadmill manufacturer Peloton continues, as shares in the company were down 7.6 percent, sitting at USD$107.41, in early trading overnight – with questions now being raised about the launch of new products in Australia.
This comes after a raft of accidents involving young children, including one death in March. The US Government issued an “urgent warning” to the public, urging them to stop using the Peloton Tread+ machine.
The US Consumer Product Safety Commission highlighted 39 separate accidents involving the treadmill, releasing the below shocking video of a small child being sucked under a Tread+ as he chases after a ball.
“CPSC staff believes the Peloton Tread+ poses serious risks to children for abrasions, fractures, and death,” the report notes.
“In light of multiple reports of children becoming entrapped, pinned, and pulled under the rear roller of the product, CPSC urges consumers with children at home to stop using the product immediately.
“It is believed that at least one incident occurred while a parent was running on the treadmill, suggesting that the hazard cannot be avoided simply by locking the device when not in use.”
The company recently appointed Karen Lawson as National Manager in Australia, ahead of the product’s expected launch. Lawson was previously MD of Spotify in Australia and chief executive of corporate accelerator Slingshot.
Peloton dispute the “unilateral” nature of this warning.
“Peloton cares deeply about the safety of its members and one of its core values is putting members first,” the company responded.
“The company is troubled by the Consumer Product Safety Commission’s unilateral press release about the Peloton Tread+ because it is inaccurate and misleading. 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.”