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Peloton Pauses Production Of Its Bike As Demand Decreases

Joe Raedle

Peloton Interactive (NASDAQ:PTON) agreed to extend a refund period for its recalled Tread+ for another year.

The U.S. Consumer Product Safety Commission and Peloton jointly announced that consumers now have until November 6, 2023 to apply for a refund.

On May 5, 2021, CPSC and Peloton (PTON) announced the recall of 125K Tread+ treadmills following the death of a child and dozens of incidents. The hazard with the treadmills is said to be that adult users, children, pets, and objects can be pulled underneath the rear roller, posing a risk of injury or death.

To date, in addition to the reported death, Peloton (PTON) has received 335 incident reports, including 87 reports of injuries to consumers.

Peloton (PTON) is working on a rear guard fix that will address the problem.

New Peloton (PTON) CEO Barry McCarthy took over the company last February and has multiple initiatives in place to lower costs and attempt to restore confidence in the stock.

Shares of PTON trickled 0.32% higher on Tuesday, but are down 78% on a year-to-date basis.

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