WASHINGTON—Today, Amazon and the Federal Trade Commission (FTC) announced they reached an agreement to end a Biden-era progressive case against Amazon’s Prime subscriptions.
“It’s good to see the Trump administration coming to the table with America’s leading technology companies to resolve disputes, instead of engaging in protracted legal battles with counterproductive outcomes for consumers and America’s ability to innovate and compete,” said Patrick Hedger, NetChoice Director of Policy.
“That said, existing, vague language under the Restore Online Shopper’s Confidence Act (ROSCA) makes it difficult for businesses to comply and invites more lawsuits by future administrations against companies acting in good faith. Updating the law would better serve the consumers it’s designed to protect and improve compliance from the businesses it regulates.”
The case, brought by Biden’s FTC Chair Lina Khan, contained several notable flaws, and the Trump FTC is taking the right step by settling this case. For one, the case inappropriately conflated efforts by Amazon to improve their customers’ experience with admissions of malfeasance. Imagine the message sent to businesses if seeking out and fixing problems invites regulatory scrutiny.
Further, the inclusion of individual business executives—American entrepreneurs—was an inappropriate move by Chair Khan. The practice of including executives in actions sends the message that the FTC is more focused on attacking American leaders than protecting consumers.
We hope President Trump’s antitrust enforcers move away from this approach and drop other cases that continue to hamper American innovation and growth.
Please contact press@netchoice.org with inquiries.
Image via Unsplash.