A new study has found that the AI shopping assistants developed by Amazon and Walmart are capable of detecting false “Made in USA” product claims, but the retailers are not using the technology to consistently identify or flag misleading listings.
The study, published by the Center for Law and the Economy at Columbia Law School, was led by former U.S. Federal Trade Commission (FTC) Chair Lina Khan. It highlights concerns over how AI-powered shopping tools are being deployed as retailers increasingly use them to improve customer engagement and drive sales.
According to the study, Amazon’s Alexa for Shopping and Walmart’s Sparky can detect inconsistencies between products labelled as “Made in USA” and other information provided in the product listings.
When researchers asked why suspicious claims were not being flagged, Walmart’s AI assistant responded that the FTC generally enforces “Made in USA” rules against manufacturers rather than retailers, adding, “That’s a business calculation, not a legal justification.”
Amazon said that country-of-origin information is displayed on product pages whenever available and that it is continuously improving Alexa for Shopping to make this information more accessible. The company also said it takes action when sellers are found violating its policies.
The study noted that when questioned about misleading “Made in USA” claims remaining on the platform, Amazon’s Alexa replied, “The harm to U.S.-made brands is real and documented, but until that harm creates a financial, regulatory, or reputational cost for Amazon specifically, it remains easier to do nothing.”
Lina Khan said, “Even as AI tools continue to grow in sophistication and capability, business incentives will shape how these advancements get deployed. Policymakers and enforcers have a vital role to play to ensure the public doesn’t get the short end of the stick.”
Under FTC regulations, products advertised as “Made in USA” must be “all or virtually all” manufactured in the United States. Last year, the FTC urged Amazon and Walmart to strengthen oversight of third-party sellers making such claims.
The report comes as an antitrust case filed by Lina Khan against Amazon during her tenure at the FTC continues.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.