Two US senators have called on the Federal Trade Commission (FTC) to investigate Amazon and Walmart over claims that their AI shopping assistants may suppress information about “Made in USA” products and fail to identify potentially misleading labels.
Senators Tammy Baldwin and Rick Scott made the request in a letter to the FTC, arguing that Amazon’s Alexa for Shopping and Walmart’s Sparky AI shopping assistant could undermine efforts to support US manufacturing while potentially misleading consumers, Reuters reported.
The senators cited a study by a think tank led by former FTC Chair Lina Khan, which examined how AI shopping assistants handle questions about products made in the United States.
According to the study, the chatbots sometimes provided information about products manufactured in countries such as China while limiting information about US-made alternatives.
The senators’ letter cited an interaction in which Alexa was asked why it did not offer a “Made in USA” filter. According to the study, the chatbot responded that such a feature could redirect significant sales away from overseas manufacturers, which it described as Amazon’s largest seller base.
The study also found that AI shopping assistants could in some cases identify potentially false “Made in USA” claims but that major retailers were not using the technology to address questionable product listings.
Researchers reportedly asked Walmart’s Sparky why it did not flag suspicious US-origin claims. According to the study, the chatbot attributed the issue partly to limited FTC enforcement against retailers and described this as a business calculation rather than a legal justification.
Amazon, Walmart and the FTC did not immediately respond to Reuters requests for comment. The Wall Street Journal first reported the senators’ request.
“We all share the goal of strengthening American manufacturing and small businesses through initiatives such as Made in USA labeling, all while ensuring consumers receive accurate information about where the products they buy are made,” Baldwin and Scott wrote in their letter.
The senators urged the FTC to conduct an investigation and consider additional enforcement measures if it finds evidence of violations.
The FTC last year sent letters to Amazon and Walmart urging them to address “Made in USA” claims made by third-party sellers. The agency cited company policies requiring sellers to provide accurate information about where products are manufactured.
The issue comes as retailers increasingly deploy AI-powered shopping assistants to help consumers search for and compare products. The senators’ request could put additional scrutiny on how these systems handle product-origin information and potentially misleading listings.
Khan, who previously chaired the FTC, sued Amazon while at the agency, accusing the company of operating illegal online retail monopolies. That case remains ongoing.
