Peloton to pay $19M civil penalty for failure to immediately report hazards

The U.S. Consumer Product Safety Commission is announcing that Peloton Interactive Inc., of New York, has agreed to pay a $19,065,000 civil penalty. The settlement resolves CPSC’s charges that Peloton knowingly failed to immediately report to CPSC, as required by law, that its Tread+ treadmill contained a defect that could create a substantial product hazard and created an unreasonable risk of serious injury to consumers. The civil penalty also settles charges that Peloton knowingly distributed recalled treadmills in violation of the Consumer Product Safety Act. In addition to the $19,065,000 civil penalty, the settlement agreement requires Peloton to maintain an enhanced compliance program and system of internal controls and procedures designed to ensure compliance with the CPSA. Peloton has also agreed to file, for a period of five years, annual reports regarding its compliance program and system of internal controls. Reference Link