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Peloton stock plummets following treadmill safety concerns
Updated Apr 21, 2021;
Peloton’s stock has plummeted this week after the company announced it would not recall its smart treadmill machine following several accidents, including a child’s death.
The U.S. Consumer Product Safety Commission (CPSC) issued an “urgent warning” Saturday on Peloton’s Tread+ exercise machine, saying in a statement there have been 39 incidents, including the death. The CPSC urged owners to stop using the treadmill immediately.
Peloton refused to recall the Tread+ and refuted the claims the same day, calling them “inaccurate and misleading.”
“There is no reason to stop using the Tread+, as long as all warnings and safety instructions are followed,” Peloton said in a statement. “Children under 16 should never use the Tread+, and members should keep children, pets and objects away from the Tread+ at all times.”