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FTC reverses, says it’s ready for trial on Amazon’s allegedly deceptive sign-ups

Shortly after the Federal Trade Commission moved to push back a trial set to determine if Amazon tricked customers into signing up for Prime subscriptions, the FTC backpedaled to clarify that it is “fully prepared” to stick with the original schedule, MediaPost reported.

At a Zoom status hearing on Wednesday, the FTC had asked US District Judge John Chun to delay the trial. According to the FTC’s attorney, Jonathan Cohen, the agency needed two months to prepare beyond the September 22 start date, blaming recent “staffing and budgetary shortfalls” stemming from the Trump administration’s Department of Government Efficiency (DOGE), CNBC reported.

“We have lost employees in the agency, in our division, and on our case team,” Cohen said, explaining that “there is an extremely severe resource shortfall in terms of money and personnel,” Bloomberg reported. Cuts are apparently so bad, Cohen told Chun that the FTC is stuck with a $1 cap on any government credit card charges and “may not be able to purchase the transcript from Wednesday’s hearing,” Bloomberg reported.

Further threatening to scramble the agency’s trial preparation, the FTC anticipated that downsizing may require a move to another office “unexpectedly,” Cohen told Chun.

But once the status hearing concluded, Cohen contacted the court to say, “I was wrong.”

“The Commission does not have resource constraints and we are fully prepared to litigate this case,” Cohen said. “Please be assured that the FTC will meet whatever schedule and deadlines the court sets.”

The reversal was likely welcome news to Amazon. At the status hearing, Amazon did not agree that a delay was necessary. The e-commerce giant’s attorney, John Hueston, told Chun that “there has been no showing on this call that the government does not have the resources to proceed to trial with the trial date as presently set.”

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