The FTC Seeks to Delay Amazon Prime Trial Amid Resource Challenges
The Federal Trade Commission (FTC) has requested a federal judge to postpone the trial in a high-profile case accusing Amazon of deceptive practices in its Prime subscription program. The request was made during a status hearing on Wednesday, where FTC attorney Jonathan Cohen highlighted the agency’s severe staffing and budgetary constraints. Cohen explained that the FTC is struggling to prepare for the trial due to significant resource challenges, including staff turnover and a hiring freeze. He attributed these issues partly to the "Fork in the Road" email sent by Elon Musk’s Department of Government Efficiency in January, which led to several employees leaving the agency. Additionally, the FTC’s legal team is racing to meet a late April deadline for discovery while dealing with restrictive rules on purchasing court documents and travel.
Amazon Pushes Back Against the FTC’s Request for a Delay
Amazon’s attorney, John Hueston, opposed the FTC’s request for a two-month continuance, arguing that most of the FTC attorneys assigned to the case are still employed by the agency. Hueston pointed out that staff turnover is a common occurrence in legal teams and does not necessarily warrant a delay. He emphasized that Amazon has already cleared its executives’ and trial lawyers’ schedules for the September trial and has been eager to resolve the case for over two years. "We really want to keep the date" for the trial, Hueston said, underscoring Amazon’s commitment to defending itself against the allegations.
The FTC’s Legal Struggles and the Impact on Preparations
Judge John Chun questioned whether the FTC’s challenges would improve in two months, given the current difficulties. Cohen acknowledged that while the agency has faced significant setbacks, it has likely endured the worst of its resource constraints. However, he cautioned that he could not guarantee that things would not become even worse. Factors such as the FTC’s office relocation in April, which will require employees to pack and vacate their current building, could further disrupt preparations for the trial. These challenges highlight the immense pressure the FTC is under as it works to meet its obligations in the case against Amazon.
Background of the Case and Amazon’s Defense
The lawsuit, filed in 2023 under former FTC Chair Lina Khan, alleges that Amazon enrolled consumers in its Prime program without their consent and made it difficult for them to cancel their subscriptions. This case is separate from a broader antitrust lawsuit accusing Amazon of monopolistic control over online markets, which is scheduled to go to trial in October 2026. Amazon has consistently denied the allegations and is eager to clear its name after more than two years of legal proceedings. The company has also been working to strengthen its ties with political figures, including former President Donald Trump, who has criticized Amazon in the past but has recently received support from Amazon’s leadership.
Amazon’s Efforts to Strengthen Ties with Trump and the Political Landscape
Amazon has been actively forging closer ties with President Donald Trump, who has historically been critical of the company. In December, Amazon founder Jeff Bezos expressed optimism about Trump’s second term, and the company donated $1 million to Trump’s inauguration fund. Bezos, along with other tech leaders, attended the inauguration, signaling a shift in Amazon’s political alignments. Additionally, Amazon’s Prime Video service began streaming "The Apprentice," the TV show that helped launch Trump’s public profile, and is working on a documentary about Melania Trump. These moves have been interpreted as attempts to build goodwill with the Trump administration and potentially influence the regulatory landscape.
Conclusion: A High-Stakes Battle with Far-Reaching Implications
The battle between the FTC and Amazon over the Prime subscription program is a high-stakes legal showdown with significant implications for both parties. The FTC’s request for a delay underscores the challenges the agency faces in pursuing major cases amid resource constraints. Amazon, on the other hand, is determined to move forward with the trial, emphasizing its commitment to defending its business practices. As the case progresses, the court’s decision will not only impact the future of Amazon’s Prime program but also set a precedent for how tech giants handle consumer subscriptions and cancellations. The outcome of this case could have far-reaching consequences for both the FTC’s ability to regulate big tech and Amazon’s reputation in the market.
