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Peloton's compliance failures result in a $19 million penalty


Peloton has agreed to pay a $19 million fine for failing to promptly report a defect with its Tread+ treadmill that could cause serious injury or death. The Consumer Product Safety Commission (CPSC) stated that Peloton received more than 150 reports of incidents, including the death of a child, before notifying regulators. In addition to the penalty, the settlement agreement requires Peloton to maintain a system of internal controls designed to ensure compliance with the CPSA. Peloton also agreed to file annual reports regarding its compliance program for the next five years.


The penalty also settles charges that Peloton knowingly distributed recalled treadmills in violation of the Consumer Product Safety Act. Sales of the Tread+ are “on hold for the foreseeable future,” according to the company’s website. The CPSC said Peloton received the first reports of injuries involving its Tread+ treadmills in December 2018. In March 2021, it was reported that the company’s co-founder and then-chief executive, John Foley, had recently learned about a fatal accident involving a child and the Tread+ treadmill. In April, the company said that a CPSC warning to consumers to stop using the Tread+ was “inaccurate and misleading,” adding that it “knows the Tread+ is safe” as long as consumers heed safety warnings. In May 2021, the company said it had voluntarily recalled 125,000 Tread+ treadmills, with Foley saying it was a “mistake” to wait so long to respond to the CPSC’s recall request.


To avoid situations like this, it's important for brands to ensure that their products are safe for consumers and the environment, and that all safety and environmental regulations are being followed. Cloudsyte, a sustainability compliance software, can help brands meet these requirements and avoid financial fines. By providing tools and resources for managing compliance, Cloudsyte helps brands protect their customers, the environment, and their bottom line.


In conclusion, Peloton's failure to promptly report a defect with its Tread+ treadmill has resulted in a $19 million fine and the requirement to maintain an enhanced compliance program for the next five years. This incident highlights the importance of compliance for businesses and the potential consequences of failing to follow safety and environmental regulations. Cloudsyte's sustainability compliance software offers tools and resources to help businesses manage compliance and avoid potential fines, ensuring the safety of their products for customers and the protection of the environment.


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