The Federal Trade Commission (FTC) has announced a court order requiring GOAT, a popular sneaker and apparel marketplace, to pay over $2 million for violating shipping rules and failing to honor its “Buyer Protection” promises.
Key Allegations:
- Shipping Delays: GOAT failed to meet its shipping promises for a significant portion of orders, including “Next Day” and “Instant” options, despite charging extra for expedited delivery.
- Buyer Protection Issues: Consumers were often denied refunds for defective or inauthentic products, contrary to the company’s advertised policies. Refunds, when issued, were frequently limited to store credit, excluding shipping costs.
- Inadequate Customer Service: Many consumers had to repeatedly escalate complaints to receive refunds.
GOAT Responds:
"We settled this matter in order to avoid costly and time-consuming litigation," a GOAT spokesperson said. "The FTC looked at tens of millions of our shipping records and the reviewed sample data indicated that 99.84% of products were shipped or received on time."
The company said the complaints centered on customer requests were also limited, representing roughly 0.008% of sample data orders, and were the result of minor error.
"We’re confident in the products we sell and the way we sell them, and we will continue to provide our members with an experience that meets our and their high standards," the GOAT spokesperson said.
Court Order Highlights:
- GOAT must pay $2,013,527 in consumer refunds.
- Prohibited from misrepresenting its shipping timelines, refund policies, or buyer protections.
- Required to improve customer service systems to honor return and refund policies for deficient products.
- Must provide full refunds, including for used or final-sale items, unless clear denial policies are disclosed.
FTC Director Samuel Levine emphasized, “When a business promises protections, it must deliver. Making consumers jump through hoops for refunds is unacceptable under the law.”
GOAT is based in Los Angeles and operates through its website and app, offering products like the 2021 Dunk Low Panda sneakers, which were at the center of some complaints.