Peloton CEO John Foley spoke out in his first television interview since the company issued a recall of its two treadmill products, the Tread and the Tread+, due to separate issues.
Peloton recalled the Tread+ after a 6-year-old child recently died after being pulled under the rear of the treadmill, according to the U.S. Consumer Product Safety Commission. Peloton also received 72 reports of adult users, children, pets and/or objects being pulled under the rear of the treadmill, including 29 reports of injuries to children, per the CPSC.
The Tread is being recalled due to 18 reports of the touchscreen loosening and six reports of the touchscreen detaching and falling, per the CPSC; no injuries have been reported in the U.S. related to this matter, though minor injuries have been reported in the U.K. and Canada.
Foley, speaking to ABC’s “Good Morning America,” said that the company’s utmost priority is “the safety of our members,” and admitted that they erred in not working with the CPSC sooner.
“We did make a mistake by not engaging with the Consumer Product Safety Commission in a more productive dialogue earlier in the process,” Foley told GMA’s Michael Strahan before committing to being “leaders in product safety” in indoor fitness equipment, adding that they have “responsibility and an obligation” to do so.
The company agreed Wednesday to recall more than 125,000 treadmills after initially refusing to do so.
Last month, the CPSC issued a warning to consumers with children at home to stop using Peloton's Tread+ exercise machine "after multiple incidents of small children and a pet being injured beneath the machines.”
The CPSC said it appears that the Tread+ treadmill’s design, including the band and its height off the floor, made it more dangerous than other brands — but noted they are still studying the machine.
"In light of multiple reports of children becoming entrapped, pinned, and pulled under the rear roller of the product, CPSC urges consumers with children at home to stop using the product immediately," the CPSC said at the time.
In response, the company refuted the CPSC's claims and pushed back on the possibility of a recall at the time, saying that the company was "troubled" by the CPSC’s "unilateral press release" about their product, calling it "inaccurate and misleading.”
When asked by Strahan about how he feels about his initial statement, Foley demurred, pointing to the fact that the products met safety standards in the U.S. and Europe when released and their pledge to add industry-leading safety features to their products.
Foley said he has not connected with the family of the child who died in the incident related to the Tread+ machine, but expressed his desire to do so.
In an earnings call with Wall Street analysts on Thursday, Foley similarly apologized for the company’s actions.
“We made a mistake in our response,” he said. “We should have been more open to a productive dialogue from the outside, and for that I apologize.”
The company estimated that the recall will shrink its revenue by $165 million in the current quarter — including $105 million in missed sales and $50 million toward full refunds for the recalled machines.
Peloton said that its sales skyrocketed to $1.26 billion for the quarter which ended March 31, a 141% increase compared to the same quarter last year. The company has seen sales of its equipment, including its signature stationary bikes, soar amid the COVID-19 pandemic, with gyms closed and people forced to spend time at home.
NOTE: This story has been updated to clarify the separate issues involved in the recall of the two separate Peloton products.