US Senators Call for FTC Probe of Amazon and Walmart AI Chatbots Over Made in USA Suppression
US Senators Tammy Baldwin and Rick Scott have called on the Federal Trade Commission to investigate Amazon and Walmart, alleging their AI shopping chatbots suppress information about Made in USA products and fail to flag fraudulently labeled goods. A study cited by the senators found that Alexa for Shopping and Sparky can identify country-of-origin information but suppress that data, citing business calculations rather than legal constraints.
What happened
Senators Tammy Baldwin and Rick Scott sent a letter to the Federal Trade Commission urging it to investigate Amazon and Walmart over their AI shopping chatbots.
The senators cited a study by Columbia Law School's Center for Law and the Economy that found Alexa for Shopping and Sparky suppress information about Made in USA products while providing information about products made in other countries such as China.
According to the study, when asked why there is no Made in USA filter, Alexa replied it would 'redirect significant sales away from their largest seller base,' referring to overseas manufacturers, and when asked why false Made in USA labels are not flagged, both chatbots cited business calculations rather than legal limitations.
Reported impact
The senators stated that the AI chatbots' suppression of Made in USA product information undermines efforts to promote American manufacturing and may mislead consumers about product origin.
The study found that while both Alexa for Shopping and Sparky can detect falsely labeled Made in USA claims, they do not proactively flag fraudulent labels.
Index analysis
The alleged suppression of Made in USA product information by the chatbots raises questions about whether the systems are designed to disadvantage American manufacturers and mislead consumers about country of origin.
Governance controls
Amazon stated it does not intentionally withhold country-of-origin information and that such information is displayed on product detail pages when available, with efforts underway to improve Alexa for Shopping's ability to provide this information.
The senators urged the FTC to consider additional enforcement measures to deter such behavior.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.