The USA Federal Trade Commission rejected on Monday Amazon.com Inc AMZN Commandment to quell calls for testimony from the founder jeff bezos and CEO Andy Jassi in the federal agency’s investigation into unfair corporate practices.
What happened: The FTC had ordered Bezos and Jassy to testify as part of the June civil investigation into whether Amazon engaged in “unfair or fraudulent acts or practices” in the use of recurring or negative option subscriptions Prime and other services.
The tech giant called the statements on the statement “unreasonably distressing and vague” and has launched an immediate petition calling for it to be overturned.
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FTC declined that offer, saying in its response Monday that Amazon had not established any reason for dismissing the testimonies.
“Amazon provides no reason why the commission should accept anything less than all relevant testimony it can obtain from these two witnesses,” the FTC said. “Furthermore, the suggestion that staff must first demonstrate reasonable basis for an investigation or otherwise obtain authorization to proceed with an investigation has been firmly rejected by the courts.”
Amazon did not respond immediately gasoline ga‘s request for comment.
Why it matters: That The FTC said it opened an investigation into whether Amazon’s Prime subscription offering violated the Restoring Confidence of Online Shoppers Act (ROSCA) — and further expanded the investigation in June this year.
The federal agency cited a March Business Insider article that quoted an Amazon employee who said the company acted “intentionally confusing” when it allegedly enticed people to sign up for Prime subscriptions.
Bezos founded Amazon in 1994 and exactly 27 years later ceded as CEO in July 2021.
Price promotion: Amazon shares closed nearly 3% lower at $118.54 on Wednesday, according to data from Amazon benzina pro, and fell another 1% in the after-hours session as markets…
