By Christiana Sciaudone
Investing.com -- Peloton (NASDAQ:PTON) dropped almost 7% after its treadmills were recalled following the deaths of children 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."