Peloton

Peloton Interactive, Inc. is a wellness technology company specializing in connected exercise equipment and subscription-based fitness content. Headquartered in New York City, the company operates in the fitness and wellness industry and is best known for its internet-connected stationary bikes, treadmills, and fitness app. As of 2025, Peloton has a significant presence in North America and Europe, with a business model heavily reliant on subscription services.

Peloton has faced significant criticism for policies perceived as undermining consumer rights, particularly through restrictive practices that challenge traditional notions of product ownership and resale rights.

Incidents

• 2024 Peloton Used Equipment Activation Fee: The introduction of a fee for activating second-hand devices was criticized for undermining the First Sale Doctrine and restricting ownership rights.
• 2021 Peloton Removes Just Run Feature: Following multiple injuries and a fatality, Peloton introduced a new feature called Tread Lock as part of a safety recall, which required users to enter a passcode to secure their treadmills but also restricted access to the "Just Run" feature for non-subscribers

Broader Implications

Peloton’s policies reflect a larger trend in consumer markets where companies leverage digital connectivity to maintain post-sale control:

• Erosion of Ownership: Practices such as activation fees and subscription locks limit consumer autonomy over purchased products.
• Precedent for Other Industries: Peloton’s approach sets a concerning precedent for post-sale control, with parallels in other industries.
• Consumer Rights in the Digital Age: The rise of devices reliant on cloud subscription services raises questions about consumer protection.

See Also

• Subscription Model