Report: FTC to Meet with Amazon Ahead of Lawsuit

Amazon could face the toughest challenge in its 30-year history as Federal Trade Commission (FTC) officials prepare to file an antitrust lawsuit against the retail giant. Representatives from Amazon will reportedly meet next week with FTC officials in the latest sign that the agency is close to filing a complaint.

According to the Wall Street Journal Monday (Aug. 7), the meetings will be held with the FTC chairperson, Lina Khan, along with commissioners Rebecca Kelly Slaughter and Alvaro Bedoya. These meetings, known as “last rites” meetings, are the final step before the agency votes on filing a lawsuit.

Reached by PYMNTS for comment Monday, an Amazon spokesperson declined to comment.

According to the Wall Street Journal, the FTC began probing Amazon due to allegations that the company was favoring its own products over outside sellers on its platform, among other complaints. The Justice Department and FTC opened probes into four tech giants — Alphabet’s Google, Meta’s Facebook, Apple and Amazon — during the Trump administration.

The FTC in June filed a lawsuit against Amazon, claiming that the company had enrolled millions of consumers into its paid subscription service, Amazon Prime, without their consent and also made it difficult for them to cancel.

Amazon responded to the FTC’s claims, stating: “Amazon called the FTC’s claims ‘false on the facts and the law.'”

The FTC on May 31 announced a $5.8 million settlement with Amazon’s Ring doorbell camera unit after the agency said cameras had been used for spying on some customers. In addition, Amazon agreed in May to pay $25 million to settle FTC allegations that the company had violated children’s privacy rights by failing to delete Alexa virtual assistant recordings at the request of their parents and by keeping them longer than necessary.

Next week’s meetings with Amazon are the FTC’s “last rites” meeting that generally precedes a lawsuit, suggesting that a decision to proceed with the lawsuit will be announced soon. The FTC typically holds meetings with companies after lengthy investigations before deciding whether to file a suit.