FTC’s Alleged Resource Crisis Amid Amazon Lawsuit Quickly Retracted
The Federal Trade Commission (FTC) found itself in an unexpected spotlight recently when claims of a severe resource crisis were made public during a call in a high-stakes legal battle with Amazon. FTC lawyer Jonathan Cohen initially suggested that the agency was grappling with significant resource shortages, prompting a request to delay the trial.
Cohen’s alarming disclosure highlighted that the FTC was experiencing a “dire resource situation.” He mentioned that staff reductions had occurred due to the acceptance of a “Fork In the Road” offer from the DOGE team, a hiring freeze was in place, and workspace issues had emerged, forcing potential relocation to former USAID facilities. Additionally, agency travel card limits were reduced to $1, and legal transcripts were being obtained at the slowest possible rate, causing delays in court preparations.
“The agency is experiencing extremely severe resource shortfalls in terms of both money and personnel,” Cohen stated to U.S. District Judge John Chun in Seattle, according to a call transcript.
This lawsuit against Amazon is one of the FTC’s most significant cases, accusing the retail giant of misleading consumers into paying for Prime memberships that were difficult to cancel. The trial was expected to commence in September. However, Amazon’s lawyer countered the rescheduling request, claiming no evidence of the FTC’s internal issues.
Judge Chun requested the FTC to formalize their delay request, but the agency’s stance shifted swiftly. In a surprising turn, Cohen sent a letter to the judge stating, “I was wrong. The Commission does not have resource constraints and we are fully prepared to litigate this case.” He assured the court of the FTC’s ability to meet the set schedules and deadlines.
The FTC declined NPR’s request for comment, but FTC Chair Andrew Ferguson told the Associated Press that Cohen’s assertions were incorrect. Ferguson emphasized that the FTC is committed to allocating the necessary resources for the case and remains resolute in confronting Big Tech companies.
Editor’s note: Amazon is among NPR’s recent financial supporters.
