Peloton's $3,000 treadmill now comes with surprise 'subscription fee'

3 years ago 165
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Peloton has now introduced a $39.99 monthly subscription fee for its high-end treadmill product line called Tread+.

This has left many customers surprised and angered considering Tread+ retails for $3,000 already.

The company has cited "safety and well-being" as a reason for introducing the membership fee.

Peloton drops 'Just Run' from its treadmills, unless you pay up

Peloton has suspended providing "Just Run" service to its Tread+ customers unless they get a Peloton Membership.

The subscription comes at a monthly $39.99 price tag.

In an email sent to a user, the company stated "safety and well-being" as a reason behind this move.

"We care deeply about the safety and well-being of our Members and we created Tread Lock to secure your Tread+ against unauthorized access," writes Peloton in an email.

Following the tragic death of a six-year-old and reports of 72 injuries like broken bones, cuts, and grazes from Tread, Peloton had recalled over 125,000 of its treadmills from both American and British markets last month.

Additioanlly, as reported by BleepingComputer last week, a vulnerability disclosed by McAfee researchers in Peloton Bike+ devices allowed complete takeover

The vulnerability also impacted Peloton Tread devices, although the scope of McAfee's research was mainly centered on Bike+.

As is, the company appears to have dropped "Just Run" from its treadmills except for those with a membership.

"Unfortunately at this time, 'Just Run' is no longer accessible without a Peloton Membership," the email continued:

Peloton emailPeloton's email stating reasons behind newly introduced monthly fee
Source: Twitter

All Tread+ owners have been granted a three-month "fee waiver" for an All Access Membership, providing everyone in a household access to personalized workouts, training programs, and metrics.

"Sounds like theft and ransomware": customer

However, the introduction of the fee has left many customers disappointed and even angered.

In a dramatic twist, Peloton customers, who believe they have already coughed up a handsome price for the treadmill, heavily criticized the move and likened the idea to ransom demands.

"So wait… You buy a $3000 treadmill, then after you've purchased, with a ‘software update’ they stop it from working until you pay them $39.99/mo? Sounds like theft & ransomware to me…," tweeted Wes Kennedy.

"Wow. The Peloton Tread will no longer allow you to use your $3000 treadmill without a $39.99 a month subscription. The pretext is their design issues that led to a child's death," said Brianna Wu, Rebellion PAC executive director and former Massachusetts candidate for US House.

"The ransomware business model is quite lucrative!" responded a third user.

A few others believe with so many consumers left surprised, the company may have opened itself up to a class-action lawsuit [1, 2, 3].

It isn't imminently clear how does the introduction of a subscription model enhances customers' safety and well-being.

BleepingComputer has reached out to the Peloton team with these questions prior to publishing and we are awaiting their response.

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