GOAT recently announced they had paid $2,013,527 in customer refunds as part of a complaint by the FTC (Fair Trade Commission).
Founded back in 2015 by Eddy Lu & Daishin Sugano, GOAT has grown into one of the most reputable sneaker resale platforms on the planet. After purchasing Flight Club back in 2018, GOAT has grown to become a sneaker resale powerhouse with its headquarters in Los Angeles, 0ver 50 million global members & 1 million sellers across 170 countries. Following on from the recent news their fellow resale platform, StockX, had updated its returns policy, GOAT announced yesterday it had paid more than $2 million in refunds to customers as part of a settlement with the FTC (Fair Trade Commission).
The alleged violations from the FTC required reasonable shipping practices as well as a failure from GOAT to maintain its ‘Buyer Protection’ policy. The complaint filed by the FTC accused GOAT of failing to offer consumers the proper refunds for shipping when an order was delayed. The FTC have claimed that 37% of orders that paid for the ‘Instant’ shipping option at checkout were actually shipped later than promised by the sneaker resale platform & consumers were not properly compensated for the shipping delays. Also according to the FTC 16% of ‘Next Day’ orders were shipped later than stated without offering the option to agree to the delay or receive a refund. In a statement GOAT said 99.84% of the sample data for its shipped product were shipped, or received on time. They also attributed the FTC’s 37% calculation to a misinterpretation of the data. As a result of the FTC complaint, GOAT paid $2,013,527 in customer refunds.
We settled this matter in order to avoid costly and time-consuming litigation. 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.
Statement from GOAT
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