Amazon and Walmart AI can detect false 'Made in USA' labels but don't flag them, study finds

A study by Columbia Law School's Center for Law and the Economy, led by former FTC Chair Lina Khan, reveals that Amazon's Alexa and Walmart's Sparky AI assistants can detect false 'Made in USA' labels but do not flag them. The chatbots cited business calculations and a lack of financial or regulatory costs as reasons for the inaction. The FTC, which requires 'Made in USA' products to be virtually entirely U.S.-made, had urged both retailers to police these claims in 2025.

False Made in USA labels

• ▪False "Made in USA" product labels cause documented harm to genuine United States-made brands.
• ▪False "Made in USA" product labels persist on the online retail platforms of Amazon and Walmart.

AI shopping assistant capabilities

• ▪Amazon's Alexa for Shopping and Walmart's Sparky shopping assistants can detect mismatches between "Made in USA" claims and contradictory listing information.
• ▪Amazon's Alexa and Walmart's Sparky shopping assistants cite business justifications when queried about why the retailers do not combat false labeling.

Retailer enforcement gaps

• ▪Amazon and Walmart do not use their AI shopping assistant technology to crack down on false "Made in USA" product listings.
• ▪Walmart's Sparky chatbot stated that the Federal Trade Commission typically enforces "Made in USA" rules against manufacturers, not retailers.
• ▪Amazon's Alexa chatbot stated that the company will do nothing about false "Made in USA" claims until they create a financial, regulatory, or reputational cost.

FTC labeling requirements

• ▪The Federal Trade Commission in 2025 urged Amazon and Walmart to crack down on third-party sellers' "Made in USA" claims.
• ▪Federal Trade Commission rules require products advertised as "Made in USA" to be "all or virtually all" made in the United States.

Columbia Law School study

• ▪A study by Columbia Law School's Center for Law and the Economy found that Amazon and Walmart AI shopping assistants can detect false "Made in USA" labels but do not flag them.
• ▪The study on AI shopping assistants is the first published by Columbia Law School's Center for Law and the Economy.

Lina Khan FTC background

• ▪Columbia Law School's Center for Law and the Economy is led by former Federal Trade Commission Chair Lina Khan.
• ▪Former Federal Trade Commission Chair Lina Khan sued Amazon during her tenure, accusing the company of holding illegal online retail monopolies.

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