FTC asks to delay Amazon Prime case due after Trump cost cuts

The Federal Trade Commission asked a federal court in Seattle on Wednesday to delay a September trial in its case alleging Amazon misled consumers over its Prime subscription service, citing “severe resource shortfalls in terms of both money and personnel.”

Jonathan Cohen, an attorney for the FTC, told US District Judge John Chun during a hearing that the agency is facing a “dire resource situation” amid cost cutting measures enacted under President Trump’s administration.

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

Cohen’s statements are the first clear indication of how large-scale efforts led by Trump advisor and Tesla CEO Elon Musk to shrink government are affecting the FTC, which enforces consumer protection and antitrust laws.

Some employees on the case took a resignation offer sent out in January, and others resigned for other reasons, or are scheduled to be on leave during the trial, and their positions cannot be filled due to a hiring freeze, Cohen said.

Trump signed an executive order in February forbidding government agencies to hire more than one employee for every four who leave.

The FTC accused Amazon in 2023 of using “deceptive user-interface designs known as ‘dark patterns’ to trick consumers into enrolling in automatically-renewing Prime subscriptions.”

Cohen said the case over what he called the world’s largest subscription program – which Amazon says has more than 200 million subscribers worldwide – involves claims worth at least $1 billion.

Amazon has denied any wrongdoing. The lawsuit also names three of its senior executives as defendants.

Cohen cited new rules limiting FTC attorneys to buying legal proceeding transcripts on the cheapest delivery schedule, which means they may take weeks to arrive.

The Trump administration has also decided not to renew the lease on the building where most FTC attorneys work, so staff may be required to move offices in the middle of trial preparation, Cohen said. Travel accounts for FTC staff have been limited, he said.

“If you are in crisis now as far as resources, how are things going to be different in two months?” Chun asked.

“I cannot guarantee that things won’t be even worse,” Cohen replied. But he said a delay would relieve strain on attorneys.

Amazon attorney John Hueston urged the judge not to reschedule, saying trial attorneys come and go in every case, “DOGE or no DOGE,” referring to Musk’s Department of Government Efficiency.

The judge asked the FTC to put in writing its request to delay the trial to later in the fall.