FTC Seeks Amazon Trial Delay Over Resource Limits

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    The Federal Trade Commission (FTC) sought permission from a federal judge on Wednesday to postpone the trial against Amazon over allegations of deceptive practices within its Prime membership program. The request for delay stems from significant staffing and financial limitations currently faced by the agency.

    During a status hearing, Jonathan Cohen, an FTC attorney, addressed U.S. District Judge John Chun regarding the lawsuit filed against the e-commerce giant in Washington state during 2023. Cohen noted, “Our resource constraints are severe and really unique to this moment,” highlighting the impact of employee losses within the agency and specific divisions, including the case team.

    When Judge Chun inquired about the reasons behind the staff issues, Cohen attributed them to federal government budget cuts and a decision by some staff to leave following a directive from Elon Musk’s Department of Government Efficiency in January. Furthermore, a government hiring freeze has hindered replacing those who have resigned.

    Initially set for September, the Amazon trial is now under consideration for a potential delay of approximately two months. The FTC, facing stringent document purchasing and travel limitations, is working under significant pressure to meet a discovery deadline in late April. Cohen explained that the agency’s legal team is “racing at considerable cost” to adhere to this timeline.

    Cohen also mentioned that the staff’s efforts might be impeded by upcoming logistical challenges, as they will need to vacate their current offices and potentially move to a new location.

    Judge Chun questioned the expected changes within two months that could alleviate the FTC’s difficulties. Cohen replied, expressing uncertainty but optimism, saying, “But there are a lot of reasons to believe… we have been through the brunt of it, at least for a while.”

    Amazon’s attorney, John Hueston, opposed the FTC’s delay request, noting that the majority of the FTC’s legal team for this case is still intact. Hueston argued that staff changes in legal teams are routine and should not merit postponement. Amazon’s executives and legal team have already prepared for the September trial, eager to resolve the long-standing allegations.

    The lawsuit, initiated under FTC’s former Chair Lina Khan, accuses Amazon of illicitly enrolling consumers into its Prime program and obstructing their efforts to cancel subscriptions. This case follows the FTC’s filing of an antitrust suit against Amazon, set for trial in October 2026, which accuses the company of monopolistic practices.

    Amazon has made efforts to cultivate a more favorable relationship with President Donald Trump, who frequently critiqued the company during his administration. In December, Jeff Bezos, Amazon’s founder, expressed optimism about a potential second Trump term, further supporting this stance with a $1 million donation to Trump’s inauguration fund. Bezos, alongside other tech leaders, also attended the inauguration as a guest.

    In alignment with this attempt to repair relations, Amazon’s Prime Video began offering “The Apprentice,” a television series that bolstered Trump’s public profile. Additionally, Amazon is producing a documentary providing an in-depth look into the life of first lady Melania Trump.

    Criticism has been directed at changes made by Bezos to The Washington Post, which some perceive as favorable towards Trump. Despite speculation, Bezos has defended the publication’s refusal to endorse a presidential candidate, labeling it a principled decision unaimed at protecting personal business interests.