Peloton's Tread+ warning

Brian Heater TechCrunch Hardware Editor joins the Yahoo Finance Live panel to discuss Peloton's Tread+ warning.

Video transcript

ZACK GUZMAN: Welcome back to Yahoo Finance Live. I want to spotlight the action we're seeing play out in today's session for Peloton shares under pressure, off by about 10% after a government agency came out with a warning for customers urging them to stop using the company's treadmill, the Tread Plus product, citing 39 instances of injury and one death.

Peloton, though, for its part here, is hitting back. The company out with a new press release noting the safety of its products, saying the company is troubled by the Consumer Product Safety Commission, the CPSC's unilateral press release about the Peloton Tread Plus because it is inaccurate and misleading. There is no reason to stop using the Tread Plus, as long as all warnings and safety instructions are followed.

And for more on that, I want to bring on Brian Heater, TechCrunch-- TechCrunch's hardware editor joins us right now. And Brian, when we're looking at this, it's getting a lot of attention because of this death that's resulted here in the case. But Peloton kind of pointing to treadmills and the safety of their products. So I mean, what do you make of the back and forth that's going on here now?

BRIAN HEATER: Yeah I mean, obviously, you should probably start off by noting that this is, in fact, a tragedy. A young child died. There have been 38 injuries. Peloton-- one of Peloton's responses to the news that came out over the weekend-- and they had also noted this a month ago when the news originally came out was that these things do happen. There is sort of a certain degree of safety concerns around these sorts of pieces of home fitness equipment. You can search this pretty easily online over the years. This kind of thing is certainly happening.

Obviously, I think-- I do believe it's something that they're taking seriously. It's something the Consumer Safety Commission is also taking seriously. And hopefully, they can come to some sort of agreement here.

AKIKO FUJITA: And Brian, what specifically has Peloton said in response to what has played out? And I wonder when you look at the overall business footprint for the company, how significant it would be to have any kind of recall tied to these events that have played out.

BRIAN HEATER: Sure, hugely significant is-- to answer the second part first. You know, this is one of, if not, their biggest products. They're still a relatively young company. And then also, not to be too sort of crass about, again, what is very much a tragedy, but big potential economic concerns here broadly, just generally, from the media coverage around this, but certainly, if they do agree to do a recall, that's going to add fuel to that fire.