When you ask an AI shopping assistant to help you find products, you probably expect it to point out misleading listings too. According to a new study, both Amazon and Walmart’s AI tools can detect fake “Made in USA” claims. However, the study claims that retailers are not using those capabilities to flag or remove the misleading listings, even when the AI recognizes conflicting information on the same product page.
How did the researchers catch this fraud?
According to Reuters, researchers at Columbia Law School’s Center for Law and the Economy tested Amazon’s Alexa for Shopping and Walmart’s Sparky chatbot directly. Both assistants proved capable of spotting mismatches between bold “Made in USA” claims and contradictory country-of-origin details buried elsewhere in the same listing.
Amazon
The study also found this kind of fraud is fairly common across both platforms. When researchers asked the bots why their companies weren’t acting on it, neither pointed to any technical limitation. Amazon’s Alexa admitted the harm to American brands is real, but explained it stays easier to ignore until it costs Amazon something directly.
Walmart’s Sparky was more blunt, stating outright that its silence reflects a business calculation rather than a legal one. Researchers also noticed Amazon’s assistant readily answers questions about products made in China, while blocking similar questions about “Made in USA” claims entirely.
Walmart
Why does this matter beyond just misleading shoppers?
FTC rules require anything labeled “Made in USA” to be all or virtually all made domestically, and the agency already asked both retailers last year to crack down on false claims by third-party sellers.
This new study is the first from the Columbia center, founded by former FTC Chair Lina Khan, who separately sued Amazon during her tenure over alleged retail monopoly practices, a case still ongoing today.
Amazon responded by saying origin information appears on product pages when available, and that it’s working to make that data easier to find. Meanwhile, Walmart didn’t offer a comment. Khan says the responsibility now falls on regulators to make sure the public doesn’t lose out as AI keeps advancing.
