Amazon, Walmart AI detect 'made in USA' fraud but do not flag it, study says
Researchers said the assistants can detect mismatched origin claims, but business incentives are keeping Amazon and Walmart from flagging deceptive listings.
- A Columbia Law School study found Amazon's Alexa and Walmart's Sparky shopping assistants detect mismatched "Made in USA" claims but fail to flag or remove the deceptive listings.
- Federal Trade Commission rules require products advertised as "Made in USA" to be "all or virtually all" made in the United States; the agency urged retailers to crack down on third-party sellers' claims last year.
- Walmart's Sparky defended its inaction by calling it "a business calculation, not a legal justification," while Amazon's Alexa admitted that without specific financial or reputational costs, "it remains easier to do nothing."
- Emphasizing the need for oversight, Federal Trade Commission Lina Khan noted that "policymakers and enforcers have a vital role to play to ensure the public doesn't get the short end of the stick."
- This analysis details ongoing tensions regarding Amazon, particularly since Khan previously sued the company for holding illegal online retail monopolies during her tenure at the Federal Trade Commission.
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Study Finds Amazon and Walmart AI Tools Can Detect False ‘Made in USA’ Claims but Aren’t Used to Remove Misleading Listings
Artificial intelligence shopping assistants used by Amazon and Walmart appear capable of identifying products with potentially false “Made in USA” claims, but a new study ... The post Study Finds Amazon and Walmart AI Tools Can Detect False ‘Made in USA’ Claims but Aren’t Used to Remove Misleading Listings first appeared on [your]NEWS.
Amazon Alexa dodges 'made in USA' queries, Khan-linked report finds
Amazon and Walmart bots dodge origin data even after FTC scrutiny. A Khan-founded policy center tested both agents on July 30, finding inconsistent answers. Continue reading this article on ppc.land. Sign up the PPC Land newsletter to get the latest marketing news.
Fox 10 Phoenix
Study accuses Amazon, Walmart of deceiving shoppers with false 'Made in USA' claims
AI shopping assistants can often detect when "Made in USA" product labels are falsely labeled, but Amazon and Walmart are not using that technology to crack down on the listings, according to a new study.
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