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The US Federal Trade Commission (FTC) announced on Wednesday that it does not require a postponement of the September trial against Amazon, contradicting a prior assertion that budget cuts had created resource limitations necessitating an extension, as reported by Reuters.
FTC attorney Jonathan Cohen withdrew his earlier statement in a communication to US District Judge John Chun in Seattle.
FTC reaffirms its commitment to the litigation
“The Commission does not face resource limitations and is fully prepared to pursue this case. Rest assured, the FTC will adhere to any schedule and deadlines established by the court,” Cohen was quoted as stating by Reuters.
FTC Chairman Andrew Ferguson reiterated the agency’s commitment to the case, highlighting its focus on consumer protection. He further indicated that the FTC will allocate the necessary resources for this matter, asserting that the Trump-Vance FTC will remain steadfast in holding Big Tech accountable.
Previous assertions of resource limitations
Earlier on Wednesday, Cohen had referred to a “critical resource challenge” stemming from budgetary reductions enacted during President Donald Trump’s administration. He mentioned workforce reductions within the agency, particularly in the division responsible for the Amazon case. “We have experienced a loss of personnel within the agency, in our division, and on our case team,” Cohen remarked during a morning hearing.
Numerous federal agencies, such as the Environmental Protection Agency, the Department of Education, and the United States Agency for International Development, have undergone substantial budget cuts due to initiatives promoted by Elon Musk, advisor to Trump and CEO of Tesla. Nevertheless, the Federal Trade Commission (FTC) has not encountered significant layoffs
Cohen noted that some employees involved in the Amazon case accepted resignation offers in January, while others left for various reasons or were on scheduled leave during the trial. Furthermore, a hiring freeze remains in effect.
Executive Order Limits Federal Hiring
In February, Trump enacted an executive order that limits federal agencies to hiring one new employee for every four who depart. In 2023, the FTC initiated a lawsuit against Amazon, accusing the company of employing “deceptive user-interface designs,” commonly referred to as “dark patterns,” to mislead consumers into subscribing to automatically renewing Prime memberships.
Case Involves Substantial Financial Claims
Cohen indicated that the lawsuit, which focuses on what he termed the largest subscription program in the world, involves claims that exceed $1 billion. Amazon, which boasts over 200 million Prime subscribers worldwide, has denied any allegations of misconduct. The lawsuit also names three senior executives from Amazon as defendants.
Logistical Challenges Highlighted by FTC Attorney
Cohen mentioned new policies that restrict FTC attorneys from fast-tracking the acquisition of legal proceeding transcripts, which could delay access to essential documents by several weeks. He also noted that the Trump administration’s choice not to renew the FTC’s office lease might necessitate staff relocation during trial preparations. Additionally, the travel budgets for FTC personnel have been curtailed.
Judge Chun inquired about the implications of these matters on the trial schedule. “If you are currently experiencing resource shortages, how do you anticipate the situation will evolve in two months?” Chun posed.
“I cannot assure you that conditions will not worsen,” Cohen replied, although he asserted that a delay would relieve some of the pressure on the legal team.
Amazon is against the delay
Amazon’s attorney, John Hueston, opposed the idea of postponing the trial, contending that legal teams often undergo changes throughout the course of a case. Referring to Musk’s Department of Government Efficiency (DOGE), he noted that trial attorneys frequently shift in every case, “DOGE or no DOGE.”
