The Consumer Product Safety Commission (CPSC) stated that the company received over 150 reports of incidents, including the death of a child and 13 injuries, before it notified regulators. 
The fine also settles charges that Peloton knowingly distributed recalled treadmills in violation of the Consumer Product Safety Act. As part of the agreement, Peloton will maintain an enhanced compliance program and file annual reports about its compliance program and internal controls for the next five years.
In a statement, Peloton (NASDAQ: PTON) expressed its pleasure at reaching the settlement and emphasized its commitment to the safety and well-being of its members and to improving its products. The recall of the Tread+ treadmill and the resulting fine and settlement have had a significant impact on Peloton's reputation and financial performance. Shares in the company have fallen 93% since May 2021 and it reported a loss of $33 million in its most recent quarterly update.
Peloton has also made significant changes to its management team and laid off over half of its workforce as sales slowed after pandemic restrictions were lifted.
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