Science & Technology · 5 Intermediate · September 1, 2026

Amazon Faces Lawsuit Over Ad Prices

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Vocabulary

lawsuit /ˈlɔː.suːt/ noun

a legal case where someone tries to punish another person or company in court

The government started a lawsuit against the company.

charge /tʃɑːrdʒ/ verb

to ask for money as a price

The store charges five dollars for this shirt.

unfair /ʌnˈfer/ adjective

not treating people equally or justly

It is unfair to pay some workers less money for the same job.

competition /ˌkɑːm.pəˈtɪʃ.ən/ noun

when companies try to sell more products or services than other companies

Competition between phone makers helps customers get better prices.

disagree /ˌdɪs.əˈɡriː/ verb

to have a different opinion from someone

My friend and I disagree about which movie is better.

federal /ˈfed.ə.rəl/ adjective

belonging to the national government, not state governments

The Federal Trade Commission works for the national government.

Article

Amazon is facing a big legal problem. The US government and many states say Amazon charged too much money for ads. They say Amazon did this on purpose. Amazon disagrees and says the government does not understand how their ad business works.

What Is the Problem?

Many companies want to show ads on Amazon's website. When people search for products, ads appear. Amazon charges these companies money to show their ads. The government says Amazon made these prices too high. They say Amazon used its power to make unfair prices.

Who Is Suing?

The Federal Trade Commission is leading the lawsuit. This is a group that protects people from unfair business. Many states joined too. Together, they say Amazon broke the law by charging unfair ad prices.

What Does Amazon Say?

Amazon says this is not true. The company says the government does not understand their business. Amazon says their ad prices are fair. The company says many other websites also sell ads. Amazon says there is real competition.

Why Does This Matter?

This case is important because Amazon is very large and powerful. Many small businesses need to buy ads on Amazon. If prices are unfair, small companies suffer. The lawsuit will show if big companies must follow the same rules as everyone else.

Discussion Questions

Have you ever bought something because of an online ad? Did you feel the price was fair?
Why do you think the government is worried about Amazon's ad prices?
What does 'unfair' mean in business? Can you give an example?
Do you think big companies should follow different rules than small companies?
How do you decide if a price is fair or too expensive?

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