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Iraqi Prime Minister to Meet with Donald Trump for Bilateral Talks
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Senators Demand Probe Into Amazon and Walmart AI Over Made in USA Claims
Senators Tammy Baldwin (D-Wis.) and Rick Scott (R-Fla.) are calling on the Federal Trade Commission to investigate how Amazon and Walmart handle “Made in America” goods and claims on their website and apps, Baldwin said in a Thursday (Sept. 17) press release.
In a letter addressed to FTC Chairman Andrew N. Ferguson and Commissioner Mark R. Meador, the senators ask for an investigation into allegations that Amazon and Walmart hide Made in America products from consumers and fail to report Made in America labeling fraud.
The senators cited a report from Columbia Law School’s Center for Law and the Economy, “Made in America, Hidden by AI,” which they said found that Amazon and Walmart’s AI chatbots, Alexa for Shopping and Sparky, respectively, are able to determine that products are Made in the USA or falsely listed as Made in the USA but suppress that information.
The senators said the report found that when Alexa for Shopping was asked to find a Made in USA product, the chatbot said it didn’t have access to that information. When asked to show products made in China, it generated a list.
“When asked why there is no Made in USA filter, Alexa replied that it would ‘redirect significant sales away from their largest seller base,’ referring to overseas manufacturers,” Baldwin and Scott wrote in the letter.
The senators said the report also found that while both Alexa for Shopping and Sparky can detect false Made in USA labels, they do not proactively flag the false labels.
“When asked why this fraud is not flagged, both chatbots responded that it is a business decision not to,” Baldwin and Scott wrote. “Sparky stated that because ‘the FTC pursues relatively few cases against retailers,’ the incentive to create proactive compliance mechanisms is low.”
Neither Amazon nor Walmart immediately replied to PYMNTS’ request for comment.
Amazon provided The Wall Street Journal with a statement that it made in response to the Center for Law and the Economy report, saying that the company does not intentionally withhold country-of-origin information.
“Country-of-origin information, when available, is currently displayed on product detail pages, and we’re continually working to improve Alexa for Shopping’s ability to accurately provide this information to make it even more accessible for customers,” Amazon said, per the report.
It was reported in April that President Donald Trump issued an executive order in March directing the FTC to prioritize enforcement of Made in USA claims.
Source: PYMNTS.com