Senators Demand Probe Into Amazon and Walmart AI Over Made in USA Claims

Senators Tammy Baldwin (D-Wis.) and Rick Scott (R-Fla.) have called for an investigation by the Federal Trade Commission (FTC) into how Amazon and Walmart handle "Made in America" claims on their websites and apps. The senators asked FTC Chairman Andrew N. Ferguson and Commissioner Mark R. Meador to investigate allegations that Amazon and Walmart hide Made in America products from consumers and fail to report labeling fraud.

The senators referenced a report from Columbia Law School's Center for Law and the Economy, "Made in America, Hidden by AI," which found that Amazon and Walmart's AI chatbots, Alexa for Shopping and Sparky, are able to determine if a product is Made in the USA but can also suppress that information. When asked to find Made in USA products, Alexa for Shopping said it didn't have access to that information.

However, when asked to list products made in China, it generated a list. The senators noted that when asked why there is no Made in USA filter, Alexa replied it would "redirect significant sales away from their largest seller base."

Similarly, Sparky could detect false Made in USA labels but did not proactively flag them. When asked why this fraud was not flagged, Sparky responded that it was a business decision not to, as the FTC pursues relatively few cases against retailers. Both chatbots also stated that creating proactive compliance mechanisms was a business decision not to, citing the low incentive due to the FTC's minimal enforcement against retailers.

The senators did not receive immediate responses to their request for comment. Amazon provided a statement to The Wall Street Journal, saying that the company does not intentionally withhold country-of-origin information and is working to improve Alexa for Shopping's ability to accurately provide this information. In April, President Donald Trump issued an executive order directing the FTC to prioritize enforcement of Made in USA claims.