The U.S. Federal Trade Commission (FTC) has reversed an earlier statement and affirmed its readiness to proceed with a September trial against Amazon, despite acknowledging resource concerns. The FTC’s commitment to the consumer protection case was reiterated by Chairman Andrew Ferguson, signaling the agency’s determination to hold the tech giant accountable.
In a statement addressed to U.S. District Judge John Chun in Seattle, FTC attorney Jonathan Cohen clarified the agency’s position: “The Commission does not have resource constraints and we are fully prepared to litigate this case. Please be assured that the FTC will meet whatever schedule and deadlines the court sets.”
This statement contradicts Cohen’s earlier remarks, delivered during a Wednesday hearing, which painted a picture of a “dire resource situation” stemming from cost-cutting measures enacted under President Donald Trump. Cohen described the impact of these cuts, noting the loss of employees within the agency, its division, and the case team. Other agencies, including the Environmental Protection Agency, Department of Education, and USAID, have also faced cuts during the Trump administration, attributed to the campaign to shrink government spearheaded by Trump advisor and Tesla CEO Elon Musk.
Despite these challenges, the FTC has not experienced large-scale reductions in force. However, Cohen explained that some employees involved in the case accepted a resignation offer in January, while others have resigned or plan to be on leave during the trial. A hiring freeze is also in effect.
Trump signed an executive order in February restricting government agencies from hiring more than one employee for every four departures.
The FTC’s case against Amazon, initiated in 2023, alleges the company used “deceptive user-interface designs known as ‘dark patterns’ to trick consumers into enrolling in automatically renewing Prime subscriptions.” Cohen emphasized the substantial financial implications of the suit: “The case over what he called the world’s largest subscription program – which Amazon says has more than 200 million subscribers worldwide – involves claims worth at least $1 billion.”
Amazon denies the allegations, and the lawsuit also names three of its senior executives as defendants.
Cohen highlighted further logistical challenges, including new rules limiting FTC attorneys to purchasing legal proceeding transcripts using the slowest delivery methods, potentially delaying their arrival by weeks. Moreover, the Trump administration has decided not to renew the lease on the building that houses most FTC attorneys, which could require staff to relocate during trial preparation. Travel expenses for FTC staff have also been limited, impacting their ability to conduct the trial efficiently.
During the hearing, Judge Chun questioned the agency’s ability to cope with the resource situation, asking, “If you are in crisis now as far as resources, how are things going to be different in two months?” Cohen responded, “I cannot guarantee that things won’t be even worse,” but noted that a delay would alleviate the strain on attorneys.
Amazon attorney John Hueston had urged the judge not to reschedule the trial, stating that the departure of trial attorneys is a common occurrence regardless of the case’s complexity.
FTC Chairman Andrew Ferguson has made clear that the FTC will pursue the case with vigor, stating, “I have made it clear since Day One that we will commit the resources necessary for this case. The Trump-Vance FTC will never back down from taking on Big Tech.”
