Peloton Has Identified an Issue With Its Original Bike Seat Post & Is Working With The U.S. CPSC

Peloton’s latest 10-Q quarterly report has brought to light a potential issue concerning the seat post on the original Peloton Bike (not the Bike+). They have taken the responsible step of informing the U.S. Consumer Product Safety Commission (CPSC) about this matter. Although the CPSC hasn’t yet approved the proposed solution, once it is greenlit, Peloton will extend the remedy to its members.

An important update followed: Peloton, in collaboration with the CPSC, officially recalled the Peloton Bike on May 11th.

The quarterly report outlines that Peloton is aware of 35 incidents involving this issue, among the approximately 2.4 million original Peloton bikes sold. Disturbingly, 12 of these cases led to injuries, including a wrist fracture.

The root of the problem centers around the seat post itself, which has been found to snap or break at the weld point. This revelation emerged through the company’s proactive efforts, thanks to their new Product Safety Compliance Program, which was established post the Tread+ recall.

The internal memo shared with Peloton employees, acquired by Bloomberg, provides insight into this proactive approach. Peloton’s Executive Product Safety Committee, a vital component of the Product Safety Compliance Program, takes responsibility for addressing safety concerns across their products and services. This formation is a direct response to the lessons learned from the Tread+ recall.

Furthermore, the memo clarifies that they will not make an official announcement until they have received full approval from the CPSC, indicating their dedication to collaboration.

Peloton’s commitment is highlighted in the 10-Q report, where they indicate that they voluntarily reported the issue to the CPSC. They are actively engaged with the CPSC in the finalization of a corrective action plan, intending to provide the approved solution to owners of the original Bike.

It’s important to note that while the original Bike remains available for sale, the CPSC is in the process of devising a plan to tackle this issue. This means that the agency has not yet made a public statement about this matter. It’s worth emphasizing that this concern pertains solely to the original Bike, not the Bike+ model.

Financially, Peloton has made adjustments to their earnings projections due to the anticipated cost of around $8.4 million associated with resolving this issue, pending CPSC’s endorsement.

In light of these events, Peloton aims to foster a closer working relationship with regulatory bodies, demonstrating their dedication to product safety and a more proactive approach. This contrasts with their handling of the Tread+ safety concerns in the past, which led to penalties.

For a comprehensive view, you can read the entire internal memo shared by Bloomberg below:

“As part of our ongoing commitment to product safety, Peloton has established the Executive Product Safety Committee, responsible for addressing safety concerns across our range of products, services, and apparel. This initiative was born out of the Product Safety Compliance Program, developed to incorporate lessons learned from the Tread+ recall. As co-chairs of this committee, we want to share a current example that underscores our proactive stance.

Recognizing the significance of product safety, we have identified a potential issue with the seat post of our original Peloton Bike. With a sense of urgency and responsibility, we voluntarily reported this concern to the US Consumer Product Safety Commission (CPSC). Our collaboration with the CPSC entails that we will unveil a well-considered corrective action plan only upon obtaining their endorsement.

As of April 30, 2023, out of the extensive count of 2.4 million Bikes sold in the US and Canada, 35 cases of seat post breakage have been reported. Disturbingly, 12 of these cases resulted in injuries, including one incident of a wrist fracture. Our rationale for this significant step revolves around our unwavering commitment to our members’ well-being. In aligning with regulatory authorities, we prioritize proactive measures to safeguard our members.

Our close cooperation with the CPSC entails that we will communicate a definitive corrective action plan upon approval. Consequently, real-time updates are constrained until our plan receives the green signal and can be shared with our members. Rest assured, we remain committed to keeping you informed to the best of our ability.”

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