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Important lessons from Peloton's tread + recall



Hunton's insurance attorney, Latosha Ellis, along with Hunton's product liability and mass injury attorneys Elizabeth Reese and Alexandra Brisky Cunningham, recently published an article in Risk Management discussing key lessons from Peloton's Tread + Recall.

On April 17, the United States Consumer Product Safety Commission (CPSC) issued a rare one-sided "urgent warning" about Tread + machines, urging consumers to stop using the treadmill because they posed a "serious risk to children from abrasions, fractures and deaths. ”. Initially, the Peloton refused to recall the equipment, calling the CPSC's warning "incorrect and misleading." But less than two weeks later, the peloton acknowledged its "mistake" and formally announced a recall. The company revealed that it had received 72 reports of adults, children, pets or objects being pulled under Tread + machines, 29 of which involved injuries to children. The platoon is currently under investigation by the Securities and Exchange Commission, the US Department of Justice and the Department of Homeland Security over its public revelations of reported consumer damages.

The recall and the events leading up to it offer valuable lessons in risk management. for all consumer product companies. The article discusses how companies can take advantage of revocation insurance, commercial public liability and board members and executives' policies to quickly implement a revocation, minimize losses and maintain customer relationships in the wake of a revocation.


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