DOGE Cuts To FTC Sow Confusion In Case Against Amazon

The Federal Trade Commission on Wednesday requested a delay in its trial against Amazon.com, Inc. (NASDAQ:AMZN), citing resource constraints due to recent cuts by the Department of Government Efficiency.

Later in the day, the FTC reversed its stance and said it would meet the schedule set by the court. 

The Details: FTC attorney Jonathan Cohen originally told U.S. District Judge John Chun that the agency is facing a “dire resource situation.” He blamed cost-cutting measures implemented by the Trump administration.

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Cohen explained, “We have lost employees in the agency, in our division and on our case team." 

The staffing shortage is partly due to a voluntary resignation offer in January, plus other departures, he said. A government hiring freeze, preventing the replacement of these positions, exacerbated the shortage.

Amazon attorney John Hueston opposed rescheduling and said staff turnover is common in all cases, “DOGE or no DOGE,” referring to Elon Musk’s Department of Government Efficiency.

Judge Chun questioned the likelihood of improvement in two months and Cohen admitted, “I cannot guarantee that things won’t be even worse,” but argued that a delay would alleviate some strain on the attorneys.

What Else: Later in the day, Cohen changed course and said he was wrong about the lack of resources, according to Reuters.

“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,” Cohen said in a statement addressed to Chun.

FTC Chairman Andrew Ferguson reiterated the agency’s readiness and commitment to the case.

“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,” Ferguson said, per Reuters. 

Why It Matters: The FTC filed its case against Amazon in 2023. Amazon allegedly used deceptive practices to trick consumers into enrolling in automatically renewing Prime subscriptions.

Cohen described it as a significant case involving “the world’s largest subscription program” with claims worth at least $1 billion.

Amazon has denied any wrongdoing in the case. 

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