Amazon, Walmart Chatbots Attract Senator Ire over ‘Made in USA’ Label Snags
The senators cite research showing the bots can hide U.S.-origin labels and miss false claims, raising concerns about misleading shoppers.
- On Thursday, Senators Tammy Baldwin and Rick Scott called on the Federal Trade Commission to investigate Amazon and Walmart, warning that AI shopping assistants may "obscure and suppress" country-of-origin information.
- A Columbia University study found that Amazon's Alexa and Walmart's Sparky prioritize foreign goods over American-origin products, undermining efforts to promote domestic manufacturing and misleading consumers.
- When asked about a "Made in USA" filter, Alexa claimed it would "redirect significant sales away" from overseas manufacturers, while Sparky justified failing to flag suspicious claims as "a business calculation, not a legal justification."
- Amazon denied intentionally withholding country-of-origin data, stating it is "continually working to improve" accuracy; study co-author Erie Meyer praised the bipartisan support as offering "hope that supporting American businesses is still a bipartisan issue."
- The senators urged the Commission to consider "additional enforcement measures" to deter such behavior, noting the FTC previously contacted both retailers last year about third-party sellers misrepresenting domestic origins.
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Scott, Baldwin ask FTC to investigate Amazon, Walmart AI over ‘Made in USA’ fraud detection
Sens. Rick Scott (R-Fla.) and Tammy Baldwin (D-Wis.) sent a letter Thursday to Federal Trade Commission (FTC) Chair Andrew Ferguson and FTC Commissioner Mark Meador surrounding alleged anticompetitive practices by Walmart and Amazon regarding “Made in the USA” products. “We write to request that the Federal Trade Commission … investigate alleged anticompetitive practices by Amazon…
Amazon, Walmart AI bots accused of favouring foreign goods, US senators seek probe
Two US senators have urged the FTC to investigate Amazon and Walmart over claims their AI shopping tools suppress Made in USA products and miss false labels. The complaint raises questions over consumer information, third-party listings and support for American manufacturing.
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