The FTC's most recent charges against Amazon coincided with the company's announcement of its Prime Day dates. Will the next seek to upstage the big event?
The Federal Trade Commission’s most recent charges against Amazon.com Inc. coincided with the company’s announcement of its Prime Day dates. Will the agency seek to rain on the e-commerce giant’s parade once the actual event arrives?
The FTC is reportedly preparing a “far-reaching” suit against Amazon AMZN that would allege the company punished merchants that didn’t use its logistics services — and Beacon Policy Advisors analyst Owen Tedford recently explored whether that action from chair Lina Khan could be announced on Prime Day, which is scheduled to take place July 11 and 12.
In Tedford’s view, Khan seems to be aiming to get the suit filed before the FTC undergoes personnel changes in August, and ahead of what tends to be a sleepier month in Washington. If the agency doesn’t get the suit out by then, Khan may opt to wait until September. Khan fired at Amazon in mid-June as the FTC charged the company with tricking consumers into automatically renewing their Prime subscriptions. Upcoming action could strike at the core of Amazon’s e-commerce business, according to Tedford. The FTC reportedly is looking into how the company determines which sellers get access to the so-called Buy Box, a button that’s seen as a crucial determiner of sales.
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