NEW YORK (AP) — Peloton is recalling its treadmills, less than a month after denying that they were to blame for the death of a child and the injuries of 29 others.
The company said Wednesday that it will offer full refunds for the treadmills, which cost more than $4,200, and will stop selling them.
The recall comes after the U.S. Consumer Product Safety Commission warned on April 17 that people with children and pets should immediately stop using the Peloton Tread+ treadmill after a child was pulled under it and died. It also posted a video on YouTube, showing a child being pulled under the equipment.
At the time, Peloton pushed back against the safety commission saying the warning was “inaccurate and misleading.” CEO John Foley also said he had “no intention” of recalling the treadmills.
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In a statement Wednesday, Foley apologized and said the company “made a mistake” in its initial response to the safety commission.
Shares of New York-based Peloton Interactive Inc. sunk more than 10% to $86.91 after the recall was announced Wednesday, its second biggest percentage decline.
Peloton is best known for its stationary bikes, but it introduced the treadmill about three years ago and now calls it the Tread+. Sales of Peloton equipment have soared during the pandemic as virus-weary people avoid gyms and workout at home. In the last three months of 2020, the company brought in $1 billion in revenue, more than double what it made the year before.
The safety commission said Wednesday that the child who died after being pulled under the Peloton treadmill was 6 years old.
In all, Peloton said it received 72 reports of adults, kids, pets or other items, such as exercise balls, being pulled under the treadmill. Of those reports, 29 were of children who suffered injuries, including broken bones and cuts.
Those who own the treadmill can get a full refund from Peloton by Nov. 6, 2022. For those that want to keep the treadmill, Peloton said it will move it free of charge to a room where children or pets cannot access it and update the software so a passcode is required to unlock it.