A study reveals that the AI used by Amazon and Walmart can detect counterfeit 'Made in USA' labels but does not disclose this information.

      The same chatbot that eagerly chats about "Made in China" claims stays quiet on those labeled "Made in USA."

      When you request product recommendations from an AI shopping assistant, you would likely anticipate it to highlight misleading listings as well. A recent study reveals that AI tools from both Amazon and Walmart can identify false “Made in USA” claims. Nonetheless, the research indicates that these retailers are not utilizing these features to flag or remove misleading items, even when the AI detects contradictory information on the same product page.

      How did the researchers uncover this deception?

      As reported by Reuters, scholars from Columbia Law School’s Center for Law and the Economy directly tested Amazon’s Alexa for Shopping and Walmart’s Sparky chatbot. Both assistants demonstrated the ability to identify discrepancies between prominent “Made in USA” assertions and conflicting country-of-origin details hidden further down in the same listing.

      The study indicated that such fraudulent claims are quite prevalent on both platforms. When researchers inquired as to why the bots’ companies were not taking action, neither cited any technical limitations. Amazon’s Alexa acknowledged the genuine harm to American brands but explained that it remains easier to overlook until it results in a direct cost to Amazon.

      Walmart’s Sparky was more straightforward, indicating that its lack of response reflects a business decision rather than a legal concern. The researchers also observed that Amazon’s assistant readily responds to inquiries about products made in China while entirely blocking questions related to “Made in USA” claims.

      Why does this issue extend beyond merely misleading consumers?

      FTC regulations dictate that anything marked “Made in USA” must be predominantly made domestically, and the agency sought both retailers last year to address false claims made by third-party sellers.

      This new study is the first from the Columbia center, which was established by former FTC Chair Lina Khan, who separately instituted a lawsuit against Amazon during her time in office over supposed antitrust practices, a case that remains active today.

      In response, Amazon stated that origin information is displayed on product pages when available and that it is working to make that data more accessible. Walmart, on the other hand, did not provide any comment. Khan asserts that it is now up to regulators to ensure that the public does not suffer as AI technology continues to advance.

      Manisha Priyadarshini is a technology and entertainment writer with over nine years of editorial experience.

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