GOAT, a popular online marketplace for sneakers, apparel, and accessories, has agreed to pay more than $2 million in refunds to consumers following an investigation by the Federal Trade Commission (FTC). The settlement comes after the company was found to have violated shipping regulations and failed to uphold its “Buyer Protection” promises.
The FTC alleged that GOAT did not meet its advertised shipping times for many orders. For example, 37% of “Instant” orders and over 16% of “Next Day” orders were shipped later than promised, despite customers paying extra for faster delivery. GOAT also failed to offer customers the option to cancel delayed orders and receive full refunds, as required by federal law.
Additionally, the FTC claimed GOAT did not honor its Buyer Protection Policy, which promised refunds for defective or misrepresented products. Instead, the company often denied refund requests or offered only partial refunds or store credit, leaving many customers without the
The FTC found that GOAT’s customer service made it difficult for consumers to file complaints or resolve issues with defective products. Only customers who repeatedly escalated their requests were able to secure full refunds, according to the FTC.
“When an online business promises to protect consumers’ purchases, it must have the appropriate systems in place to make sure those protections can be implemented,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection.
Under the terms of the court order, GOAT will pay $2,013,527 to refund affected consumers. The company is also required to stop its illegal shipping practices, clearly disclose its refund and return policies, and improve its customer service systems. GOAT will no longer be allowed to deny refunds for defective products based on timing, purchase conditions, or unclear policies.
The FTC emphasized that businesses must follow through on their promises to customers, including adhering to shipping schedules and refund policies. The agency encourages consumers to report fraudulent practices at ReportFraud.ftc.gov.
For more consumer protection updates, visit consumer.ftc.gov.
