By Rajwa Quasim

A new study found that Amazon’s and Walmart’s AI shopping assistants can identify false “Made in USA” claims on products, but the companies are not using that capability to warn shoppers about misleading labels.

The report comes from a thinktank led by Lina Khan, the former chair of the Federal Trade Commission (FTC), and was first published by Columbia Law School’s Center for Law and the Economy. According to the study, Amazon’s Alexa and Walmart’s Sparky can identify contradictions within the same product listing. For instance, a “Made in USA” badge appearing alongside mentions of imported components or overseas shipping details.

When researchers pointed why the AI assistants don’t flag these inconsistencies to shoppers, the chatbots gave a tactful response rather than a logical one. Walmart’s Sparky said the FTC typically pursues manufacturers rather than retailers for false labeling, meanwhile Amazon’s Alexa said, “The harm to U.S.-made brands is real and documented, but until that harm creates a financial, regulatory, or reputational cost for Amazon specifically, it remains easier to do nothing.”

READ: Walmart job cuts: 306 Silicon Valley employees to be laid off soon (June 25, 2026)

Under FTC rules, a product can be marketed as “Made in USA” only if it is “all or virtually all” manufactured in the United States. The FTC has already taken action on the issue. In July 2025, the agency sent warning letters to Amazon and Walmart regarding third-party...

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