The famous exercise equipment manufacturer, Peloton is currently the subject of a federal investigation by the Securities and Exchange Commission or SEC.
The Department of Justice or the DOJ, and the Department of Homeland Security is currently investigating the incidents involving the company's machines and the injuries it caused to several people, Peloton said in its recent financial filing.
Peloton Under Federal Investigation
The fitness company recalled two of its treadmill brands in May, the Tread and the Tread+. It was after it pushed back against a Consumer Products Safety Commission or CPSC request to do so.
The CPSC had said that the death of a child and the accident that 70 people suffered involving the treadmills is why it ordered the company to recall the equipment, according to CNET.
The investigation regarding the product's quality came after Peloton's bike was targeted by hackers earlier this year, making users question the company's security.
The agency stated that it was aware of numerous cases of children being pulled under the treadmills while it is running. Objects and pets could also get pulled into the machines, causing serious injuries to users.
Peloton acknowledged that the company was wrong to reject the agency's recall order initially. Company CEO John Foley said that the company had engaged more productively with the CPSC since then.
The fitness company is also the subject of several lawsuits. Peloton acknowledged all of its legal troubles in its annual 10-K report filed with the SEC on Aug. 27. The lawsuit is expected to cost the company $165 million in lost revenue.
Several federal agencies and Peloton did not immediately respond to the media's requests for comment regarding the lawsuits and investigations.
Peloton eventually removed the Tread and Tread+ treadmills from its official website after it recalled the products.
The site now lists a new, redesigned Tread product that, according to the company, was thoughtfully designed with the "safety of the users in mind." The new products will be available on Aug. 30.
Despite the recall and the lawsuit, Peloton will push through with UnitedHealth members' promised free workout classes.
Death Involving Peloton's Equipment
In March, the fitness company warned parents to keep their children away from its treadmill after a six-year-old died when he was pulled underneath the rear of the machine, according to CBS.
Foley stated that the accident is one of the "small handful" of incidents children have been injured on their exercise equipment.
After the child's death, the CPSC stated that Peloton had voluntarily recalled the Tread+ machines, which posed a safety risk because its display console is not sturdy.
An agreement between the fitness company and the agency was made. This means that Peloton can no longer resell the machines in the United States, and they were asked to give their customers a full refund.
According to the BBC, the recall was also issued in the United Kingdom.
In the US, the equipment was sold as part of the company's limited invitation-only release. It was available from November 2020 to March 2021, and Peloton stated that it is now working to repair the machines and offer better and safer products to its customers.
However, the company did not give a specific time frame for when it will release a new lineup of products. The fitness company may focus on its impending lawsuits in the meantime.
This article is owned by Tech Times
Written by Sophie Webster