The US Consumer Product Safety Commission (CPSC) announced in press release alongside the company that the Tread and Tread+ treadmills would be taken off sale to 'prevent further harm' to the public.
Anyone who owns either treadmill should immediately stop using it and contact Peloton for a full refund.
CPSC previously warned consumers about the Tread+ last month.
Peloton CEO John Foley admitted his company had made a mistake and offered an apology to customers.
He 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 Consumer Product Safety Commission’s request that we recall the Tread+.
"We should have engaged more productively with them from the outset. For that, I apologize. 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.”