WASHINGTON—President Joe Biden’s Federal Trade Commission (FTC) today officially filed its highly anticipated lawsuit against Amazon’s Prime service in the U.S. District Court for the Western District of Washington. This lawsuit is an especially radical move from FTC Chair Lina Khan because it would forcibly break apart a leading American business for providing pro-consumer services.
If Khan is even somewhat successful in court, the precedent set will provide the administrative state far more power to control the economy.
“It’s clear the Biden administration no longer cares about consumers as it complains that Amazon’s prices are too low and people like it too much. If the FTC wins, Americans will pay more for less. The agency is supposed to protect consumers from fraud, real monopolies and scams. Instead, Biden is ignoring the massive inflation and struggles Americans see daily, and his FTC wants to rip apart American companies that are providing affordable goods and services to consumers during this time. This is Bidenomics in action and Americans deserve better,” said Carl Szabo, NetChoice Vice President & General Counsel.
This lawsuit makes it abundantly clear: President Biden and his administration do not care about what Americans think, what services they choose and whether they are paying low prices. Biden wants his regulators to control which companies you buy things from and how specifically you buy them. And they are willing to come after the American businesses that are doing the best at providing these services.
Since Chair Khan has taken the helm at the FTC for Biden, she has wielded the power and authority of a supposedly independent government agency to pursue her progressive policy goals, ignore consumer welfare and inappropriately use her position as chair. This lawsuit is the latest example of Khan’s ideological crusade, and consumers will pay more for less if it is successful.
Americans themselves don’t even want this lawsuit. Poll after poll shows Amazon ranking as one of the most trusted brands in the world and that they want the government to focus on real problems impacting them and their families.
- NetChoice polling shows that 84% of Americans and 92% of Republicans think the FTC’s lawsuit against Amazon is a waste of resources.
- The 2023 American Customer Satisfaction Index (ACSI): Amazon tied for 1st for its selection, value, and online shopping experience, and ranked it 2nd overall for online retail customer satisfaction.
- Boston Consulting Group’s 2023 Most Innovative Companies report: Amazon ranks 3rd.
- Morning Consult poll: Amazon ranked No. 3 among the most trusted brands in the U.S., after Band-Aid and UPS.
- Axios-Harris Poll: Of the 100 most visible companies among American consumers, Amazon is 8th, marking its 15th consecutive ranking in the Top 10.
- Harvard/Harris poll: Amazon is one of the most favored institutions in America.
- Pew Research Center: Voters believe increasing prices and partisanship are the biggest problems in the U.S.
The Biden administration should drop this fruitless effort against a successful U.S. company that Americans love, has increased consumer welfare and competition, and helped decrease prices.
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