FTC Clarifies Misstep: No Resource Constraints for Amazon Prime Trial

The Federal Trade Commission (FTC) clarifies its position, stating it has no resource constraints for the upcoming trial against Amazon's Prime program. Initially, an FTC lawyer's remarks suggested otherwise, citing budgetary issues. FTC leadership later reaffirmed their commitment to challenging Big Tech, denying any fiscal limitations.

The Federal Trade Commission recently retracted statements implying budgetary constraints could hinder its readiness for the upcoming trial against Amazon's Prime program. This came after Jonathan Cohen, an FTC lawyer, initially cited staffing and budget issues during a federal court hearing.

In a subsequent letter to U.S. District Judge John Chun, Cohen admitted his earlier inaccuracies, stating, "I was wrong. The Commission does not have resource constraints and we are fully prepared to litigate this case." FTC Chair Andrew Ferguson reinforced this stance, emphasizing their commitment to allocating necessary resources to confront Big Tech.

Cohen's comments were made against the backdrop of broader government cost-cutting measures initiated by the Department of Government Efficiency, led by Elon Musk. Despite these measures, the FTC remains steadfast in its legal action against Amazon, which alleges unauthorized enrollment of consumers into the Prime program and challenges in subscription cancellation.

(With inputs from agencies.)