Consumer Reports no longer recommends Peloton as clash between tread company and feds boils over

Investor sets Peloton price target at $150 per share

Gregg Smith on Snap and Peloton

Consumer Reports has pulled its recommendation for the Peloton "Tread+" treadmill after the Consumer Product Safety Commission issued a safety warning, the product testing nonprofit confirmed on Wednesday.

Prior to its removal, Peloton had held the top in Consumer Reports’ treadmill rankings. The decision came days after the CPSC said it was aware of at least 39 incidents linked to use of the Tread+, including the death of a child.

"We are taking the rare and unusual step of removing the Peloton Tread+ from our ratings based on the incident data described by the CPSC, given the severity and the nature of the injuries and that the agency has not seen these types of injuries with other treadmills," said Liam McCormack, vice president of research, testing, and insights at Consumer Reports.

"Given that the incidents involved not only children but adults we believe that there is a safety risk, and we’re removing our rating and recommendation while we investigate further, monitor the company’s ongoing response, and await more information from the CPSC," McCormack added.

Peloton did not immediately respond to a request for comment on Consumer Reports’ decision. Company shares fell more than 6% in trading Wednesday.

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CPSC said the public should stop using the Tread+ if they have small children or pets, or keep the device in a locked room. The warning said the agency had determined the treadmill "poses serious risks to children for abrasions, fractures, and death," with "multiple reports" of children becoming "entrapped, pinned or pulled under the rear roller of the product."

Peloton disclosed in March that a child was killed in what it described as a "tragic accident" involving the treadmill. However, the company pushed back on the CPSC’s warning in a statement earlier this week.

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"The company is troubled by the Consumer Product Safety Commission's (CPSC) unilateral press release about the Peloton Tread+ because it is inaccurate and misleading," Peloton said in a statement. "There is no reason to stop using the Tread+, as long as all warnings and safety instructions are followed. Children under 16 should never use the Tread+, and Members should keep children, pets, and objects away from the Tread+ at all times."

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