Amazon.com IncStudy finds Amazon's AI tools can detect false Made in USA claims but are not used for enforcement, exposing it to legal and regulatory risks.
A new study found that Amazon and Walmart have artificial intelligence shopping tools capable of detecting potentially false Made in USA claims, but the retailers are not regularly using those capabilities to flag or remove suspect listings. The research showed that Amazon's Alexa for Shopping and Walmart's Sparky could spot inconsistencies between country-of-origin statements and other product details. Federal Trade Commission standards require that anything labeled Made in USA be created wholly or almost entirely in the United States, and the agency had previously asked both companies to better monitor third-party merchant claims. Amazon said it provides country-of-origin information when accessible and continues to improve data access, while Walmart did not immediately reply. The findings raise concerns that AI shopping solutions may be built more to boost sales than to enhance marketplace compliance, potentially exposing the companies to legal, regulatory, and reputational risks if authorities determine they had the technology to detect deceptive statements but chose not to act.
Amazon.com IncStudy finds Amazon's AI tools can detect false Made in USA claims but are not used for enforcement, exposing it to legal and regulatory risks.
Walmart Inc.Study finds Walmart's AI tools can detect false Made in USA claims but are not used for enforcement, exposing it to legal and regulatory risks.