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Lawsuit

Biden’s FTC is declaring war on consumer preferences in their latest Amazon antitrust lawsuit 

FOR IMMEDIATE RELEASE | September 26, 2023

The FTC’s latest Amazon antitrust case seeks to end your consumer preferences

WASHINGTON, D.C. – This morning, the Federal Trade Commission launched another antitrust lawsuit against the tech firm Amazon, claiming that unique offerings to Amazon Prime subscribers, including faster logistics, bundled services, and low prices, are somehow harmful to consumers and should result in the company being broken up.

Yaël Ossowski, deputy director of the Consumer Choice Center reacted to the lawsuit:

“Consumers know they’re getting a myriad of benefits with their Prime subscription, whether that’s faster delivery, cheaper prices, or bundled services like data storage and content streaming. That’s what consumers want, and why millions buy from Amazon everyday.

“I think many Americans would be appalled if they learned what Biden’s FTC is proposing with these lawsuits: that Amazon Prime, as it stands, should cease to exist.

“That the FTC would waste their resources going after an innovative company that consistently offers value for consumers reveals more about the agency’s political grudge than any perceived harm to consumers. Consumers have overwhelmingly had their welfare increased because of Amazon’s products and services. Government efforts to break that up are harmful to consumers.

“Behind the U.S. military, Amazon is the most favorable institution in the country, mainly because millions of consumers have had experience with Amazon’s platform, have been employed by the company, or have used their services in any way,” said Ossowski.

“It is well known FTC Chair Lina Khan has spent her career trying to build an antitrust lawsuit against Amazon, as is revealed in her 2017 article on “Amazon’s Antitrust Paradox, but those efforts fall flat with consumers who benefit and appreciate their services.”

“As we mentioned in our USA Today oped on this topic, consumers have voted with their wallets when it comes to Amazon’s services, including Amazon Prime. That an agency of the federal government would spend valuable time and resources trying to punish a company for offering too many affordable products and services in a unique way only seems laughable,” added Ossowski.

Contact

Stephen Kent, Media Director

Stephen@consumerchoicecenter.org 


The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva, Lima, Brasilia, and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at consumerchoicecenter.org.

***Please send media inquiries to yael@consumerchoicecenter.org.***

FTC sues Amazon Prime for being too affordable and too convenient for consumers 

WASHINGTON, D.C. – On Wednesday, it was reported that the Federal Trade Commission has filed a lawsuit against the tech firm Amazon, claiming that its Prime subscription has “tricked” unwitting consumers by offering lower prices and faster delivery for customers who sign up for the service. The suit claims the company has “trapped” customers into Prime subscriptions.

Yaël Ossowski, deputy director of the Consumer Choice Center reacted to the lawsuit:

“Consumers know they’re getting a myriad of benefits with their Prime subscription they can cancel at anytime, whether that’s faster delivery, cheaper prices, or bundled services like data storage and content streaming. That’s what consumers want.

“That the FTC would waste their resources going after an innovative company that consistently offers value for consumers reveals more about the agency’s political grudge than any perceived harm to consumers. Consumers have overwhelmingly had their welfare increased because of Amazon’s products and services.

“Behind the U.S. military, Amazon is the most favorable institution in the country, mainly because millions of consumers have had experience with Amazon’s platform, have been employed by the company, or have used their services in any way,” said Ossowski.

“It is well known FTC Chair Lina Khan has spent her career trying to build an antitrust lawsuit against Amazon, as is revealed in her 2017 article on “Amazon’s Antitrust Paradox”, but those efforts fall flat with consumers who benefit and appreciate their services.”

“Consumers have voted with their wallets when it comes to Amazon’s services, including Amazon Prime. That an agency of the federal government would spend valuable time and resources trying to punish a company for offering too many affordable products and services in a unique way only seems laughable,” added Ossowski.


The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva, Lima, Brasilia, and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at consumerchoicecenter.org.

**Please send media inquiries to yael@consumerchoicecenter.org.***

After another big lawsuit bites the dust, can we admit it’s time for legal reform?

It seems California isn’t so lawsuit crazy after all. Last Monday, Los Angeles jurors announced their ruling in just one of the dozens of lawsuits currently making their way through the courts on baby powder made by Johnson & Johnson. The jury found the company was not at fault for a woman’s mesothelioma diagnosis.

The trial brought forth experts from all stripes who presented their evidence and conclusions on whether the talc used in the baby powder produced by the Philadelphia-based company contained asbestos.

This is one instance in which a jury has sided with the scientific evidence, but that’s not often the case.

We shouldn’t forget that it was a California jury that initially awarded $2 billion to plaintiffs in a case considering whether the glyphosate found in Round-Up made by Monsanto, now a subsidiary of Bayer, caused cancer.

The judge, though, eventually reduced the verdict to $78 million to avoid the “arbitrary award” first conjured up by the tort lawyers. And that’s considering no major national body has deemed glyphosate to be carcinogenic.

In 2016, after the first $72 million verdict against J&J for its baby powder, scientists interviewed post-trial cast doubts on the claim made by the case, specifically because there has yet to be a definite link between modern-day talc and any cancers. The same has been echoed by the American Cancer Society.

But that won’t stop the trial lawyers who now recognize their golden goose. A record $4.7 billion verdict was delivered in Missouri in July 2018 against the pharmaceutical and consumer goods giant, and that’s proved fodder for the legal firms now lining up to cash in. And that’s because a jury has determined these products to be unsafe, rather than regulators and scientific experts. In the eyes of our legal system, juries provide more proof than actual evidence.

And considering the legal fees billed by national law firms, it’s not hard to see why these cases are so lucrative for them.

If you’ve been glued into television at all the last few years, you’ll know that between political ads, dozens of law firms around the country are aggressively soliciting plaintiffs for class-action lawsuits. “Call today, you could be compensated!” “You deserve justice now!”

Websites such as TopClassActions.com purport to “connect consumers to settlements, lawsuits, and attorneys”, and maintain an active log of thousands of open class-action lawsuits that any consumer can click and join. Their daily newsletter highlights potential awards and deadlines and gives top billing to the biggest cases with a low threshold to become a plaintiff.

While such services may be necessary for legitimate harms and victims, we must admit it’s all gotten a bit out of hand.

The tort system was devised as a way to offer justice to those who have been harmed.

Originally published here.


The Consumer Choice Center is the consumer advocacy group supporting lifestyle freedom, innovation, privacy, science, and consumer choice. The main policy areas we focus on are digital, mobility, lifestyle & consumer goods, and health & science.

The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at 
consumerchoicecenter.org

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