Shares of Peloton Interactive were down about 9 percent in mid-day trading Monday after the U.S. Consumer Product Safety Commission (CPSC), in an unusual move, warned people to stop using the company’s Tread+ “immediately” if they have children or pets in the home, citing 39 incidents including one death. Peloton called the warning “inaccurate and misleading” but some analysts felt the heightened safety concerns could slow subscriber growth.
The warning comes after Peloton, on March 19, released news of a child’s death by a $4,000 Tread+ and CPSC’s announcement of an investigation into that incident.
The agency’s warning is another blow for the once high-flying company that has also recently seen its staggering growth capped by inventory constraints for its popular connected bikes amid the pandemic. The constraints have led to long wait times for customers.