GOAT Ordered to Pay $2 Million for Shipping Violations

The U.S. Federal Trade Commission (FTC) has ordered GOAT, an online marketplace for sneakers and apparel, to pay over $2 million to consumers due to violations involving misleading shipping practices and inadequate buyer protections. The FTC's complaint indicated that GOAT failed to deliver 37% of its 'Instant' orders on time and more than 16% of 'Next Day' orders, despite charging additional fees for expedited shipping. Furthermore, the agency found that GOAT did not consistently honor its 'Buyer Protection' policy, often denying full refunds for defective products and only granting partial refunds or store credits. GOAT settled to avoid lengthy litigation, contending that a majority of its orders were shipped on time but acknowledged the need to improve customer service and refund processes. FTC Director Samuel Levine stressed the importance of businesses fulfilling their promised consumer protections without requiring customers to navigate complex complaint processes. The stipulated order will also enforce stricter compliance with refund and shipping policies moving forward.