The US Federal Trade Commission (FTC) has cracked down on online sneaker marketplace Goat, ordering the company to pay more than $2 million to consumers over deceptive shipping practices and failing to honor its "Buyer Protection" policies. In a complaint filed against the company, the FTC alleges that Goat failed to ship many orders on time, despite charging customers extra fees for priority shipping.

According to the FTC, Goat's shipping practices were misleading, with 37% of "Instant" orders and over 16% of "Next Day" orders failing to meet the promised shipping deadlines. Despite this, the company continued to charge customers between $14.50 to $25 in shipping upgrade charges. The FTC claims that Goat failed to comply with the Mail, Internet, or Telephone Order Merchandise Rule, which requires companies to give buyers the option to agree to a delay or cancel an order and receive a refund in such cases.

The FTC also took issue with Goat's "Buyer Protection" offering, which promised customers full refunds if they received deficient products. However, the agency found that the company rejected many of these return requests, and in cases where it did grant a refund, it mostly only did so partially or with in-store credits. Furthermore, Goat's customer service practices were designed to only provide full refunds to customers who continued to complain about their order.

Samuel Levine, Director of the FTC's Bureau of Consumer Protection, stated that "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. Forcing consumers to jump through hoops or keep complaining in order to get a promised refund is also unacceptable under the law."

The proposed court order requires Goat to pay $2,013,527 to provide refunds to buyers harmed by its illegal shipping practices. The company will also be required to stop its deceptive shipping practices going forward. This move by the FTC serves as a warning to other e-commerce companies to ensure they are complying with consumer protection laws and regulations.

The implications of this ruling are significant, as it highlights the importance of transparency and accountability in online marketplaces. With the rise of e-commerce, consumers are increasingly reliant on companies to deliver on their promises. This case demonstrates that regulatory bodies will take action against companies that fail to meet their obligations, and that consumers will be protected.

In conclusion, the FTC's order against Goat serves as a reminder to online businesses to prioritize consumer protection and transparency in their operations. As the e-commerce landscape continues to evolve, it is crucial that companies prioritize building trust with their customers and complying with regulatory requirements.