Liza Lecher works out on her Peloton Tread+ treadmill on May 24, 2021 in Williamstown, New Jersey.
Michael Loccisano | Getty Images
Peloton agreed to extend a refund period for its recalled Tread+ for another year, the company and the U.S. Consumer Product Safety Commission jointly announced Tuesday.
The refund period was extended to Nov. 6, 2023, as Pelton continues to work on a fix. Consumers have until them to request a refund or take the company’s offer to move the Tread to another room in the house. Customers returning units after Nov. 6, 2023, will receive a prorated refund.
Shares of Peloton were up more than 5% Tuesday morning.
In April 2021, the CPSC had warned consumers to stop using the Tread+ after a child died in an accident involving the device. The CPSC also disclosed 18 reports about the treadmill’s touchscreen loosening, six reports of the touchscreen detaching, as well as warnings about the gap between the floor and the belt of the Tread +.
Peloton recalled around 125,000 of its Tread+ machines and of its 1,050 Tread products. In total, there were 335 incidents reported with 87 reports of consumer injury.
“Peloton is working on a rear guard that would address the hazard at the back of the treadmill but no repair has been approved to date,” the CPSC and Peloton said in their joint release Tuesday.
Following the recall, then-CEO John Foley apologized for Peloton’s inaction, and said it should have engaged with the Consumer Product Safety Commission’s initial request for a recall more productively.
The Tread+ was originally called the Tread, but was rebranded to prepare for the release of a less expensive version, which was then delayed by the recall.
Peloton is in the midst of a broad turnaround effort under Barry McCarthy, who took took over as CEO in February. Peloton slashed 500 jobs in early October, following multiple rounds of layoffs earlier in the year. McCarthy said that “the restructuring is done” with that round of cuts.
Read the full announcement here.