Peloton Crisis Management 

Peloton Interactive is a sports and exercise equipment manufacturing American company. The Tread+ model of the treadmill company Peloton has caused more than 70 safety incidents including the passing of a child in 2021. It had a great negative impact in jeopardizing the reputation of the company. Today, we’ll discuss Peloton crisis management; the crisis event; the strategic approach of the company; and lessons learned from Peloton crisis event. 

Crisis Event to Peloton 

An incident occurred in 2021 when a six-year-old was pulled under the Peloton treadmill model Tread+ while the parents were running on it. There were approximately 70 reports of safety incidents and injuries relevant to the company’s particular treadmill model. However, things became worse when the US Consumer Product Safety Commission informed and warned the public to avoid using the treadmill in the presence of pets and children. 

Strategic Approach of Peloton Crisis Management 

Some of the main strategic approaches of Peloton crisis management that aggravated the situation and they’re as follows; 

Rejected US CPSC’s Request

The US CPSC (Consumer Product Safety Commission) warned the public about the possible incidents relevant to the usage of a particular treadmill model. The CPSC also requested the company to recall the product model Tread+. Initially, Peloton rejected the request for product recall and denied all the claims of CPSC by saying that they were misleading and wrong. The company maintained its statement that if the users had followed the proper instruction manuals, then there would be no fear of any safety incident. 

Product Recall 

After the initial negative response, Peloton ordered the product recall of the Tread+ model a few months later. The exercise equipment manufacturing company said that it would add safety features like guardrails to prevent pets and children from being pulled over and stuck under it. 


The CEO of Peloton John Foley apologized to the public and US CPSC for rejecting their initial product recall request. He admitted the fact the company should have followed the proactive approach to ensure public safety and incident protection. 

Full Refund 

As a part of the product recall process, Peloton also announced that the customers would receive a full refund by Nov 2022 for returning the product. The company also offered the touch screen repair service by a technician in the customer’s location. 

Incidents Relevant to Treadmill 

Peloton is not the only company that its treadmill caused an incident. The treadmills of different companies have caused multiple incidents over the years. However, how the company responded and reacted to the incident and crisis event, greatly attracted the attention of the public and negatively impacted the company’s reputation. 

Lessons Learned from Peloton Crisis Management

Some of the main lessons learned from the Peloton crisis management and the company’s mistakes are as follows; 

Late Apology 

By the time Peloton apologized to the public and US CPSC, it was a bit late. The company’s stock price and brand value declined significantly during the period of two months, along with a lot of negative media coverage and reporting. Other treadmill manufacturing companies and their products have also caused accidents, but they didn’t reject and deny the recall request. 

Truth Sets You Free

Businesses and companies make mistakes all the time just like ordinary human beings. When your business or company has messed up and made a mistake, then it is necessary to speak the truth and not cover it up with false claims and silly logic. Denying the charges and avoiding the main causes of the problem is tempting and helpful in the short term, but it has a great negative impact on the company’s reputation in the long term. 

Therefore, it is always significant for businesses and companies to speak the truth and face the consequences. Rather, someone else would reveal the truth about yourself, it would expose all the cover-ups you have made. 

Accept Responsibility 

Accepting responsibility for the negative and defective products would help businesses and companies to regain the trust and confidence of customers much earlier; rather than denying and rejecting the charges and allegations. When the company takes responsibility, then it starts working on the corrective course of action to manage the problem. However, when Peloton rejected the product recall request of US CPSC, then it made many customers furious that the company was not taking responsibility for its defective product. 

Valuing Customers’ Safety 

When Peloton refused to recall the defective product, then it proved one thing the company prefers sales and profit over consumer safety. The company should have preferred the customers’ safety and listened to the safety concerns of its customers, rather than blaming them they weren’t following their safety manuals. That’s why companies should value their users and customers and carefully listen to their feedback. 

Conclusion: Peloton Crisis Management | Lessons Learned from Peloton Crisis Event 

After an in-depth study of the Peloton crisis management; we have realized that Peloton is a leading exercising equipment manufacturing company. If you are learning about the treadmill crisis event of Peloton; then you should keep in mind the abovementioned crisis event; the company’s response, and the lessons learned from Peloton crisis event. 

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