The Federal Trade Commission (FTC) has recently clarified its stance concerning its preparation for a September trial over Amazon’s Prime service, dispelling previous statements regarding resource issues.
During a court session on Wednesday, Jonathan Cohen, an attorney representing the FTC, requested the postponement of the trial and eased deadlines, attributing the need to budget and staffing constraints. However, the FTC later rectified this assertion, submitting a letter to U.S. District Judge John Chun to address this misunderstanding.
In the correspondence, Cohen acknowledged his mistake, clarifying that the Commission is not experiencing resource limitations and is fully equipped to proceed with litigation. “I want to clarify comments I made today: I was wrong,” he expressed in the letter.
Furthermore, FTC Chair Andrew Ferguson supported this correction in a statement released on Thursday, emphasizing the agency’s commitment to resource allocation for the case. “The attorney was wrong,” Ferguson stated, stressing his dedication to challenging major tech companies. He reiterated that the FTC would continue to allocate necessary resources to address the issue.
Cohen’s initial comments came against the backdrop of extensive federal budget reductions initiated by the Department of Government Efficiency (DOGE), led by Elon Musk. Cohen mentioned in the Wednesday hearing that some FTC staff opted to leave after receiving a directive from the administration in January. Due to a government hiring freeze, these departures, along with others who left for unrelated reasons, resulted in unfilled vacancies.
The looming trial originates from a lawsuit filed by the FTC in 2023, accusing Amazon of allegedly enrolling consumers in its Prime program without their explicit consent and complicating the cancellation process.
When reached for comments, an Amazon spokesperson did not immediately provide a response.
