Peloton Tarnishes Its Red-Hot Brand With Safety Missteps
Back in April, the U.S. Consumer Product Safety Commission issued an urgent warning related to Peloton's (NASDAQ: PTON) Tread+ treadmill. The CPSC was aware of 39 incidents of injuries caused by the treadmill, including one tragic incident that led to the death of a child. The CPSC told consumers to stop using the product if there were small children or pets at home.
Peloton's pricey connected fitness products have won over plenty of customers during the pandemic. Peloton has a Net Promoter Score of 94, which indicates that many of the company's customers actively advocate for the products.
One sure-fire way to hurt a brand is to put profits ahead of safety or to appear to do so. Peloton initially refuted the CPSC's claims, calling the urgent warning "inaccurate and misleading." It said there is "no reason to stop using the Tread+, as long as all warnings and safety instructions are followed." It accused the CPSC of unfairly characterizing the company's efforts to collaborate.
Source Fool.com
