Peloton stock falls on treadmill recall, Brits told to stop using the product

Britain has added to the woes of Peloton Interactive Inc (NASDAQ:PTON) which saw its stock tumble in New York amidst major problems with home treadmills. The stock fell 14.5% on Wall Street closing Wednesday at US$82.62 per share, before slipping further in out-of-hours deals. Pelaton recalled its trendy treadmills, which cost around US$5,000 in the first year, in the United States due to safety problems and now the British government’s Office for Product Safety and Standards advised UK consumers to stop using the product. It comes after reports of 70 injuries and the death of a child in the United States. The exercise equipment and app group recalled some 125,000 machines after American regulators told people to stop using the treadmill if they have children or pets in the home. Chief executive John Foley meanwhile apologised for not cooperating with US product safety regulators sooner. The company previously refuted product safety commission claims in a statement on April 17. At that time, the company said: “The company is troubled by the Consumer Product Safety Commission's (CPSC) 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.” Then in Wednesday’s recall statement, Foley said: “I want to be clear, Peloton made a mistake in our initial response to the Consumer Product Safety Commission’s request that we recall the Tread+. “We should have engaged more productively with them from the outset. For that, I apologize.” “We believe strongly in the future of at-home connected fitness and are committed to work with the CPSC to set new industry safety standards for treadmills. We have a desire and a responsibility to be an industry leader in product safety.”