Amazon And Walmart AI Identify “Made In USA” Fraud but Fail to Report It

According to a recent study from a think tank headed by former U.S. Federal Trade Commission Chair Lina Khan, AI shopping assistants can frequently identify when “Made in USA” product labels are false, but the major retailers are not using that technology to crack down on the listings. Amazon (AMZN.O) and Walmart (WMT.O) both have new tabs.

The study raises concerns about the conflicting motives of AI shopping assistants because retailers view the technology as a means of increasing consumer spending.

According to the study’s authors, Amazon’s Alexa for Shopping and Walmart’s Sparky shopping assistants can identify discrepancies between clear “made ⁠in USA” statements and conflicting information in product descriptions.

When asked why businesses aren’t doing more to stop misleading labeling, AI-driven chatbots have responded with commercial explanations. Walmart’s Sparky stated that the FTC usually enforces “made in USA” regulations on manufacturers, not stores, when researchers questioned why it did not report questionable “made in USA” claims. According to the study, Walmart’s chatbot stated, “That’s a business calculation, not a legal justification.”

Walmart did not immediately provide a statement.

“We’re constantly working to improve Alexa for Shopping’s ability to accurately provide this information to make it even more accessible for customers,” an Amazon representative stated. “Country-of-origin information, when available, is currently displayed on product detail pages.”

According to the corporation, Amazon takes action when it discovers vendors who are breaking its rules.

After Khan returned to Columbia Law School following her time at the Federal Trade Commission, the Center for Law and the Economy released the first research.

Business motivations will influence how AI technologies are implemented even as their sophistication and capabilities continue to develop. To make sure the public doesn’t receive the short end of the stick, policymakers and enforcers are essential, Khan said.