Federal Trade Commission Proposes Postponing Amazon Trial Due to Employee Reductions Instigated by Musk's Decisions
Rewritten Article:
Amazon faces a legal battle over its Prime subscription service, as the US Federal Trade Commission (FTC) has pleaded for a delay in the September trial, citing a significant shortage of resources. This appeal was addressed to a federal court in Seattle on Wednesday.
Attorney Jonathan Cohen, representing the FTC, painted a grim picture during a hearing, highlighting the agency's dire resource situation under President Donald Trump's administration. He noted that the FTC has experienced a considerable workforce reduction, both in terms of overall staff count and specifically within the case team assigned to this matter.
Cohen's revelations offer a rare glimpse into the impact of the broad government reduction efforts spearheaded by Trump advisor and Tesla CEO Elon Musk. These efforts have apparently affected the FTC, an organization responsible for enforcing consumer protection and antitrust laws.
Some employees chose to take a resignation offer issued in January, while others have departed for various reasons or are scheduled to be on leave during the trial, with a hiring freeze currently in effect, Cohen explained.
The turning point came when Trump signed an executive order in February, preventing government agencies from hiring more than one employee for every four who leave.
The FTC has accused Amazon of engaging in deceptive practices through "dark patterns" – user-interface designs that mislead consumers into automatically renewing Prime subscriptions. Cohen estimated the value of claims involved in this case, describing it as one of the world's largest subscription programs, with approximately 200 million subscribers worldwide as per Amazon's own assertions.
Amazon has maintained its innocence and has named three of its senior executives as defendants in this lawsuit.
Cohen also argued that new rules restrict FTC attorneys from purchasing legal proceedings transcripts on expedited delivery schedules, which could result in delays of several weeks. Moreover, the Trump administration has chosen not to renew the lease on the building where most FTC attorneys work, potentially forcing staff to relocate mid-preparation. Travel allowances for FTC staff have also been reduced.
Judge John Chun inquired about the FTC's situation, asking, "If you are in crisis now as far as resources, how are things going to be different in two months?" Cohen replied, "I cannot guarantee that things won't be even worse." However, he argued that a delay would alleviate some of the strain on attorneys.
Amazon's attorney, John Hueston, countered the request, urging the judge not to reschedule the trial, suggesting that talent fluctuation is common in every case, be it DOGE or any other. The judge has requested the FTC to submit its formal request by Friday.
- Elon Musk, as an advisor to President Donald Trump, has been linked with government reduction efforts that have allegedly affected the Federal Trade Commission (FTC), a body responsible for enforcing both consumer protection and antitrust laws in tech business.
- The FTC, currently understaffed due to workforce reductions and a hiring freeze, is grappling with the imminent September trial against tech giant Amazon, accused of deceptive practices involving its Prime subscription service.
- As the case progresses, the FTC faces challenges such as delays in obtaining legal proceedings transcripts, the potential relocation of staff mid-preparation due to a expired lease, and travel allowance reductions, which could potentially compromise their ability to effectively argue against Amazon's billionaire executives in court.
