The Federal Trade Commission has been investigating the sign-up and cancellation practices of Amazon Prime starting in March 2021 with the issuance of civil subpoenas, the retail and tech giant disclosed in a petition to the agency filed earlier this month.
The petition asks the FTC to cancel, or extend the deadline for answering, subpoenas sent last June to Bezos, Amazon’s former CEO, and current CEO Andy Jassy. It says the FTC “has identified no legitimate reason for needing their testimony when it can obtain the same information, and more, from other witnesses and documents.”
The investigation has widened to include at least five other subscription programs, according to Amazon: Audible, Amazon Music, Kindle Unlimited, Subscribe & Save, and an unidentified third-party program not offered by Amazon. The regulators are asking the company to identify the number of consumers who were enrolled in the programs without giving their consent, among other customer information. In June, agency staff sought to serve subpoenas on nearly 20 current and former Amazon employees, at their homes, with dates for them to give testimony in coming weeks, the petition says.
Amazon says in the petition it has worked “diligently and cooperatively” with FTC staff for more than a year to provide information relevant to the probe, offering up some 37,000 pages of documents. It calls the information demanded in the subpoenas “overly broad and burdensome.”
Amazon blames the standoff on “unexplained pressure placed on staff to complete the investigation hastily, by an arbitrarily chosen deadline.”
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FTC spokespeople didn’t immediately respond to a request for comment.
With an estimated 150 million U.S. subscribers, Amazon Prime is a key source of revenue, as well as a wealth of customer data, for the Seattle-based company. It costs $139 a year. The service added a coveted feature this year by obtaining exclusive video rights to the NFL’s “Thursday Night Football.”
Last year, Amazon asked unsuccessfully that
FTC Chair Lina Khan step aside from separate antitrust investigations into its business, contending that her past public criticism of the company’s market power makes it impossible for her to be impartial.
Amazon’s latest petition to the FTC was first reported Tuesday by The Wall Street Journal.
