This study raises concerns regarding the conflicting motivations behind AI shopping assistants, as retailers view this technology as a means to enhance sales.
The research highlighted that Amazon’s Alexa for Shopping and Walmart’s Sparky can spot discrepancies between explicit “made in USA” claims and conflicting details in product descriptions.
When questioned about the lack of action against false labeling, the AI chatbots provided business-related explanations. For instance, when researchers probed Walmart’s Sparky on why it doesn’t flag questionable “made in USA” claims, it stated that typically the FTC enforces these rules against manufacturers rather than retailers.
”That’s a business calculation, not a legal justification,” noted Walmart’s chatbot, as cited in the study.
A Walmart spokesperson has not yet issued a comment.
“Country-of-origin information, when present, is currently shown on product detail pages. We are continually striving to enhance Alexa for Shopping’s ability to accurately deliver this information, making it more accessible for customers,” an Amazon spokesperson remarked.
Amazon emphasized its commitment to act against sellers who breach its policies, the company stated. This study marks the first publication from Columbia Law School’s Center for Law and the Economy, which was established following Khan’s return to the university after her tenure with the Federal Trade Commission.
“Despite the increasing sophistication of AI tools, business motivations will influence how these technologies are implemented. Policymakers and enforcers have a crucial role to ensure that the public is not disadvantaged,” Khan remarked.
FTC regulations mandate that products advertised as “made in USA” must be “all or virtually all” manufactured within the United States. Last year, the FTC called upon Walmart and Amazon to take stronger actions against third-party sellers making false “made in USA” claims, highlighting company policies that require sellers to provide truthful information.
Concerning ongoing false “made in USA” claims on the platform, Amazon’s Alexa reportedly responded, “The harm to US-made brands is real and documented, but until that harm results in a financial, regulatory, or reputational cost for Amazon specifically, it remains easier to do nothing.”
Khan previously filed a lawsuit against Amazon while serving at the FTC, accusing the company of maintaining illegal online retail monopolies. That case is still in progress.
