The Federal Trade Commission (FTC) has announced a court order requiring GOAT, the popular online marketplace for sneakers, apparel, and accessories, to pay more than $2 million for violating federal rules on shipping and consumer protection. The Los Angeles-based company, operating under 1661, Inc., was found to have misled customers about its shipping timelines and refund policies, causing significant harm to consumers.
According to the FTC’s complaint, GOAT failed to deliver on promises regarding expedited shipping for its “Instant” and “Next Day” orders. Investigators found that 37% of “Instant” orders and 16% of “Next Day” orders were shipped later than advertised, even though customers paid premium fees of up to $25 for upgraded shipping. The FTC also alleged that GOAT did not offer buyers the option to cancel delayed orders and receive refunds, as required by federal law.
The FTC also accused GOAT of misrepresenting its “Buyer Protection” policy. Despite advertising full refunds for inauthentic, incorrect, or defective products, the company frequently denied consumer claims or issued only partial refunds, often as store credit instead of monetary reimbursement. Customers were required to escalate their complaints repeatedly to customer service to receive any relief, and many were still excluded from promised protections.
As part of the settlement, GOAT will pay $2,013,527 to refund affected consumers and is required to implement new customer service practices to ensure transparency and compliance with its policies. The court order also prohibits GOAT from misrepresenting shipping times, return policies, or protections offered to consumers in the future. The company must clearly disclose any denial policies and provide fair resolution options for all specially protected products.
The complaint and final order were filed in the U.S. District Court for the Central District of California, following a unanimous vote by the FTC’s commissioners.
