Senators urge FTC to investigate whether Amazon and Walmart chatbots bury "Made in USA" products

Two senators, Tammy Baldwin and Rick Scott, have urged the Federal Trade Commission (FTC) to investigate how Amazon's Alexa and Walmart's Sparky shopping chatbots handle product inquiries regarding the "Made in USA" label. The senators expressed concern that the AI systems might obscure or suppress information about U.S.-made goods, potentially leading to false advertising.

This issue emerged following a July report from Columbia University's Center for Law and the Economy, which found that the AI chatbots did not consistently reveal domestic-origin claims. The senators noted that while product data exists on retailers' websites, a chatbot's ability to find and present this information when queried by consumers is crucial.

During tests, Alexa initially could not access such information but later returned U.S.-made products when the query wording was altered. Sparky, too, initially could not verify "Made in USA" claims but later ranked products based on the apparent reliability of their labels. Baldwin argued that these responses could disadvantage domestic manufacturers, as consumers might bypass American-made goods in favor of cheaper foreign alternatives.

Amazon denied deliberately withholding country-of-origin information, stating it provides this data when manufacturers or third-party sellers supply it, and also mentions it on product detail pages when available. Walmart declined to comment. The FTC has previously cautioned both companies about inaccurate origin claims made by third-party sellers, suggesting such claims could violate federal standards and the companies' own terms of service.

The senators emphasized that while the FTC enforces its Made in USA Labeling Rule, the new report suggests the problem may extend beyond product listings to chatbot behavior, which could make it harder for consumers to detect credible domestic-origin claims.