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By Christiana Sciaudone
Investing.com — Peloton (NASDAQ:PTON) dropped almost 7% after its treadmills were recalled following the death of a child at the hands of the equipment.
The U.S. Consumer Product Safety Commission (CPSC) and Peloton announced two separate voluntary recalls of Peloton’s Tread+ and Tread treadmills, and said consumers should immediately stop using them and contact Peloton for a full refund or other qualified remedy. Peloton has also stopped the sale and distribution of the Tread+.
The recall comes weeks after the CPSC warned consumers about the danger of the Tread+ "after multiple incidents of small children and a pet being injured beneath the machines." Peloton last month also warned parents to keep children away from the machine after the death of a child.
Peloton Chief Executive Officer John Foley issued a mea culpa.
"I want to be clear, Peloton made a mistake in our initial response to the Consumer Product Safety Commission’s request that we recall the Tread+. We should have engaged more productively with them from the outset. For that, I apologize," Foley said in a statement. Today’s announcement reflects our recognition that, by working closely with the CPSC, we can increase safety awareness for our Members."