Peloton to pay $19 million fine for recalled treadmills

Yahoo Finance Live anchors discuss Peloton agreeing to pay a $19 million fine for a delay in disclosing treadmill issues.

Video transcript

[AUDIO LOGO]

JULIE HYMAN: Peloton is paying up. The companies agreed to a $19 million fine for failing to notify regulators of a defect in its Tread+ exercise machines that could cause serious energy-- injury, according to the US Consumer Product Safety Commission. This goes back a couple of years, as we know. The other thing is that the company was accused of reselling--

BRIAN SOZZI: Yeah.

JULIE HYMAN: --the recalled treadmills, which like--

BRAD SMITH: Yeah.

JULIE HYMAN: --amazing.

BRIAN SOZZI: Out to lunch.

JULIE HYMAN: I mean, this is old news, right? We already knew that this has happened so this is the resolution of this issue. But, you know, just reminds us of some of the issues that the companies had.

BRIAN SOZZI: In the spirit of the analysis that our friend of the show, [? DeeDee ?] Thomas did on Bed Bath & Beyond, I went to a Palace new shop-in-shop inside of Dick's Sporting Goods--

BRAD SMITH: Yeah?

BRIAN SOZZI: --recently. And that deal was cheered as a potential big huge win for Peloton. I went up there, it's buried on the second floor. They have a treadmill, a Peloton Bike. Nobody helping you to buy one of these things. You can't buy a pair of shoes. It's a terrible presentation. Peloton needs to do a better job. And for that matter, so does Dick's Sporting Goods. Awful experience.

BRAD SMITH: Yeah, I mean, and that was around the time where they were rolling out some of those big partnerships. You had Amazon, you had Dick's Sporting Goods, and you had Hilton partnerships. Some of those wholesale purchases, all of those in the course of, what, two to three weeks. And that, one of those with Amazon prior to their earnings.

But it's really a question of for the consumer who has leaned into some of the in-home fitness solutions and connected devices. We've started to see the number of workouts wane. And the, you know, apprehension to purchase has really increased, unfortunately.

BRIAN SOZZI: So true.