Peloton is recalling all of its Tread and Tread+ machines in the US, after striking a deal with the US Consumer Product Safety Commission (CPSC).
The treadmills have been linked to the death of a child and there have been multiple reports of injuries to other users.
The at-home fitness giant said consumers who have purchased either treadmill should immediately stop using it and contact Peloton for a full refund.
Peloton will also stop the sale and distribution of the Tread+ and continues to work on additional hardware modifications.
The recall covers all of the US, but it is unclear whether it affects the UK or other markets.
The move comes less than a month after CPSC issued a statement, warning that consumers should "stop using the Peloton Tread+" machine.
The CPSC's statement was initially disputed by Peloton, who called it "inaccurate and misleading".
The mood has clearly changed since, with Peloton CEO John Foley apologising and admitting the company had "made a mistake" with its initial reaction to the CPSC statement.
Foley said: "The decision to recall both products was the right thing to do for Peloton’s members and their families.
"I want to be clear, Peloton made a mistake in our initial response to the CPSC's request that we recall the Tread+.
"We should have engaged more productively with them from the outset. For that, I apologise.
"Today’s announcement reflects our recognition that, by working closely with the CPSC, we can increase safety awareness for our members.
"We believe strongly in the future of at-home connected fitness and are committed to work with the CPSC to set new industry safety standards for treadmills.
"We have a desire and a responsibility to be an industry leader in product safety.”
Robert S Adler, acting chair of the CPSC, said: "I'm pleased that the CPSC and Peloton have come to an agreement to protect users of the Peloton Tread+ and Tread products.
"The agreement, which the commission voted this morning to accept, requires Peloton to immediately stop selling and distributing both the Tread+ and Tread products in the US and refund the full purchase price to consumers who wish to return their treadmills.
"The agreement between CPSC and Peloton is the result of weeks of intense negotiation and effort, culminating in a cooperative agreement that I believe serves the best interests of Peloton and of consumers.
"I would like to thank the CPSC technical staff who have worked tirelessly to protect consumers and to warn the public. Today we have taken steps to prevent further harm from these two products."
