Peloton's poor financial results aren't the only problem. Peloton, according to ABC News, has been subject to multiple federal investigations regarding its reporting on injuries sustained in the use of fitness equipment. The Justice Department and Homeland Security subpoenaed Peloton for records and other information related to injury reporting. Meanwhile, the SEC is looking into public disclosures about those injuries.
This news comes after a Tread+ and Tread+ recall in May. Peloton recalls approximately 125,000 treadmills, despite fighting the Consumer Product Safety Commission. The company claimed its gear was safe as long as users followed the instructions. Officials weren't sure the precautions would have prevented the death of a child and at least 29 other injuries. Peloton eventually gave in and is now shipping a safer tread with software and hardware updates.
Peloton's conduct will not be reprimanded if any of these investigations are successful. However, they do press the company to take action at a time when Peloton is resorting to price reductions to boost its sales. This is a dire situation that won't improve in the near term.
