Peloton agrees to a costly recall, and Trump's Facebook account is in limbo: Thursday Wake-Up Call
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A falling stock price did what dozens of injuries and a child death couldn’t. More than two weeks after the Consumer Product Safety Commission recommended a recall of all of Peloton’s treadmills, the fitness brand complied, despite pushing back at first.
“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,” said Peloton CEO John Foley in a statement.
With 125,000 of the $4,295 units in the U.S. eligible for a full refund, this could easily end up costing Peloton hundreds of millions of dollars. And while not everyone will return their treadmill, the company’s botched response means the recall is getting more attention, surely driving up the number of refunds Peloton will have to provide.
Donald Trump’s Facebook account remains suspended after a review by the platform’s content oversight board, an independent body whose rulings are binding. The account had been taken down after Trump encouraged his supporters to attack the Capitol on Jan. 6. But the board did call the company out for trying to shift responsibility away from itself, decreeing that Trump’s indefinite ban needs to be revisited soon.
Facebook either needs to ban him permanently, reinstate him, or ban him for a specified period of time for a specified infraction, the board said. After all, he’s just a regular Facebook user now, and subject to the same terms of service (and protections) as anyone else.
After the news, Facebook postponed meetings with advertisers that had been scheduled for this week, Insider reports.
By September, many agencies will be back in the office, at least part-time. “Restrictions, such as masks, are likely. Small shops are more likely to reopen quicker, and much depends on an agency’s location,” writes Ad Age’s Brian Bonilla. “And in some cases, the physical space employees return to will be different—with private desks, open-air spaces and accommodations similar to the home offices they have become used to.”
In the offices of old, space was at a premium (remember hot desking?), but personal space is the name of the game now. That means shops with smaller headcounts and in markets with cheaper real estate are going to have a much easier time meeting in-person again.
Putting a plan together gets even more complicated for holding companies and national and international agencies. Health regulations and the realities of the pandemic day-to-day vary from state to state and country to country, so blanket policies are pretty much useless. As for vaccines, there’s no guarantee colleagues will have gotten their shots. Employers can require it in the U.S., but medical and religious exemptions muddy those waters, too.
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Global brands are throwing their weight—and money—behind relief efforts in India, which is experiencing an unprecedented surge in coronavirus cases and deaths. UPS’ philanthropic foundation pledged $1 million, CNBC reports.
This comes a week after FedEx pledged $4 million, with President and COO Raj Subramaniam, who grew up in India, calling the task “personal.” Amazon also supplied $5 million worth of medical equipment and transportation.
There’s no dying in baseball: Yankees and Mets fans who get a shot of the single-dose Johnson & Johnson vaccine at Yankee Stadium or Citi Field will also receive a free ticket to the game, CBS reports. For those who still refuse, there’s a 33% capacity (paid) section for the unvaccinated.
Slow start: As MDC’s merger with Stagwell Partners marches to completion, MDC posted negative net revenue, a 1.4% decrease compared to last year. Of the big holdcos, only Omnicom is in a similar position, but MDC CEO Mark Penn predicts 7-9% organic revenue growth by the end of the year.
Token effort: Gary Vaynerchuk dropped his NFT project on Wednesday, 10,255 digital tokens that grant swag, services and access to Gary Vee himself, along with three years of admission to the aptly named VeeCon, a “superconference” open only to people with one of these tokens.
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