The FTC will pursue a case accusing Amazon of deceptive practices after earlier requesting a delay, citing a lack of resources. Photo by John Angelillo/UPI |
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March 13 (UPI) -- The Federal Trade Commission said it was ready to litigate its case against Amazon for alleged deceptive practices, despite an earlier request in the day for more time.
FTC's legal team had at first on Wednesday asked U.S. District Court Judge John Chun for the Western District of Washington for a two-month continuance regarding the case due to staffing and financial deficits, and Judge Chun then set a Sept. 22 trial date. FTC lawyer Jonathan Cohen claimed that the FTC had "lost employees in the agency, in our division and on our case team."
When the judge asked Cohen how things could improve by then if the commission was "in crisis now, as far as resources," Cohen said the FTC may have to move to another office, which could impair its ability to properly prepare for the trial.
However, hours later Wednesday, Amazon attorney John Hueston contested Cohen's delay request, saying the FTC can meet its deadlines necessary to begin the case.
"There has been no showing on this call that the government does not have the resources to proceed to trial with the trial date as presently set," Hueston said, adding that the trial team was properly staffed and ready to go, even if there was an office move in the works, "And by the way, both in government and private sector, I've never heard of an office move being more than a few days disruptive."
Cohen then wrote a letter to Judge Chun stating he "was wrong" and that the FTC "does not have resource constraints" and was "fully prepared to litigate this case."
"Please be assured that the FTC will meet whatever schedule and deadlines the court sets," he wrote.
An FTC spokesperson also confirmed to CNBC that the agency is no longer seeking a delayed start date for the trial.
The FTC had first filed suit against Amazon in June 2023, alleging that it was deceiving millions of customers by having them sign up for its Amazon Prime program, but then "knowingly complicated the cancellation process for Prime subscribers who sought to end their membership."
Now-former former FTC Chair Lina Khan said at the time that "Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money," and that "These manipulative tactics harm consumers and law-abiding businesses alike."
Amazon has denied this, purporting in a statement that the "FTC's focus has radically departed from its mission of protecting consumers and competition, and calling the FTC's claims "wrong on the facts and the law, and we look forward to making that case in court."
Current FTC Chair Andrew Ferguson has since confirmed that Cohen's initial delay request was incorrect, telling CNBC that the "Trump-Vance FTC will never back down from taking on Big Tech."