Amazon accuses FTC of harassing executives including Jeff Bezos and Andy Jassy
Amazon accuses FTC of harassing executives including Jeff Bezos and Andy Jassy
Former Amazon CEO and current Executive Chairman Jeff Bezos.
Dan Farber
Amazon has accused the U.S. Federal Trade Commission of harassing its top executives, including founder Jeff Bezos and chief executive Andy Jassy, as part of an investigation into the program eCommerce Group Premium Membership.
As of March 2021, the regulator has been investigating whether Amazon is using deceptive techniques to trick customers into signing up for Prime, the subscription service that offers free shipping and other benefits for a cost of $139 per year.
The FTC is also investigating whether Amazon is unfairly complicating the process for customers who wish to cancel their subscription.
In an August 5 filing that was made public by the regulator on Monday, Amazon said the investigation had become “unduly burdensome” for employees and executives after at least 19 people received subpoenas. individual appearance - or civil inquiry requests - to testify. .
The company called on the FTC to “cancel or limit” the requests, which it said had no purpose other than “harassing Amazon's top executives and disrupting its business operations.”< /p>
Amazon said informing Bezos and Jassy to testify on "granular" details would be a "huge burden on them." At a minimum, the company said the deadline for providing the information should be extended.
The FTC did not respond to a request for comment. Amazon did not respond to requests for additional comment.
Amazon said the sudden demands followed months of inactivity by the FTC and alleged the company and its executives had only weeks to comply. He added that the FTC bypassed Amazon's legal team to serve the subpoenas directly on individuals, creating "confusion" and "delays."
In addition to Bezos and Jassy, executives who received subpoenas included Doug Herrington, head of retail at Amazon, and Russell Grandinetti, head of international consumer.
Former execs Dave Clark, who had been the head of global consumer, and Greg Greeley, the former head of Prime, were also served.
The filing accused the FTC of improperly denying at least one subpoenaed employee full access to Amazon's legal team. It describes an acrimonious investigative hearing that ended after only "a few minutes" after Amazon's attorney was asked to leave by FTC staff, prompting the employee who was testifying to follow suit.
The Prime program has been touted as the key to Amazon's success, with members typically spending more money than non-members. Revenue from direct subscription fees was $8.7 billion in the second quarter, or about 7% of total Amazon revenue for the period.
The FTC, under the leadership of Chairwoman Lina Khan, is committed to cracking down on the power of Big Tech groups. In particular, the regulator has identified tackling deceptive online tactics, known as dark patterns, as a priority, and issued a new set of guidelines in October.
The FTC's investigation was extended to four other Amazon subscription services, including its Kindle Unlimited ebook service and music streaming platform Amazon Music.
Amazon's applications will be subject to a vote by FTC commissioners, which include three appointed Democrats and two Republicans.
Details of the filing were first reported by Business Insider.
Former Amazon CEO and current Executive Chairman Jeff Bezos.
Dan Farber
Amazon has accused the U.S. Federal Trade Commission of harassing its top executives, including founder Jeff Bezos and chief executive Andy Jassy, as part of an investigation into the program eCommerce Group Premium Membership.
As of March 2021, the regulator has been investigating whether Amazon is using deceptive techniques to trick customers into signing up for Prime, the subscription service that offers free shipping and other benefits for a cost of $139 per year.
The FTC is also investigating whether Amazon is unfairly complicating the process for customers who wish to cancel their subscription.
In an August 5 filing that was made public by the regulator on Monday, Amazon said the investigation had become “unduly burdensome” for employees and executives after at least 19 people received subpoenas. individual appearance - or civil inquiry requests - to testify. .
The company called on the FTC to “cancel or limit” the requests, which it said had no purpose other than “harassing Amazon's top executives and disrupting its business operations.”< /p>
Amazon said informing Bezos and Jassy to testify on "granular" details would be a "huge burden on them." At a minimum, the company said the deadline for providing the information should be extended.
The FTC did not respond to a request for comment. Amazon did not respond to requests for additional comment.
Amazon said the sudden demands followed months of inactivity by the FTC and alleged the company and its executives had only weeks to comply. He added that the FTC bypassed Amazon's legal team to serve the subpoenas directly on individuals, creating "confusion" and "delays."
In addition to Bezos and Jassy, executives who received subpoenas included Doug Herrington, head of retail at Amazon, and Russell Grandinetti, head of international consumer.
Former execs Dave Clark, who had been the head of global consumer, and Greg Greeley, the former head of Prime, were also served.
The filing accused the FTC of improperly denying at least one subpoenaed employee full access to Amazon's legal team. It describes an acrimonious investigative hearing that ended after only "a few minutes" after Amazon's attorney was asked to leave by FTC staff, prompting the employee who was testifying to follow suit.
The Prime program has been touted as the key to Amazon's success, with members typically spending more money than non-members. Revenue from direct subscription fees was $8.7 billion in the second quarter, or about 7% of total Amazon revenue for the period.
The FTC, under the leadership of Chairwoman Lina Khan, is committed to cracking down on the power of Big Tech groups. In particular, the regulator has identified tackling deceptive online tactics, known as dark patterns, as a priority, and issued a new set of guidelines in October.
The FTC's investigation was extended to four other Amazon subscription services, including its Kindle Unlimited ebook service and music streaming platform Amazon Music.
Amazon's applications will be subject to a vote by FTC commissioners, which include three appointed Democrats and two Republicans.
Details of the filing were first reported by Business Insider.
Former Amazon CEO and current Executive Chairman Jeff Bezos.
Dan Farber
