Amazon and Walmart AI tools can detect false ‘Made in USA’ claims, study finds

Online shopping assistants powered by artificial intelligence can identify misleading ‘Made in USA’ labels on products sold through Amazon and Walmart, according to a new study. However, the research claims that retailers are not using those capabilities to warn shoppers or remove inaccurate listings, even when AI systems recognise conflicting information on the same product page.

The findings come from researchers at Columbia Law School’s Centre for Law and the Economy, who examined how the AI shopping assistants respond to questions about product origins. The study suggests that while the technology can detect inconsistencies, the information is not being used to improve transparency for consumers.

Researchers test AI shopping assistants

The research team evaluated Amazon’s Alexa for Shopping and Walmart’s Sparky chatbot by asking them about products displaying ‘Made in USA’ claims. The AI assistants identified situations in which a product’s headline stated it was made in the United States. At the same time, other information on the same page listed a different country of origin.

According to the researchers, these conflicting claims appeared frequently across both online marketplaces. The AI tools were able to recognise the discrepancies without difficulty, suggesting that identifying misleading origin labels is technically possible using existing technology.

The researchers also questioned the chatbots about why the inaccurate listings remained available. According to the study, neither assistant suggested that technical limitations prevented action. Instead, the responses implied that the issue was linked to business decisions rather than the inability to detect misleading information.

Amazon’s Alexa reportedly acknowledged that false ‘Made in USA’ claims could harm American businesses. However, it suggested the issue was less likely to receive attention unless it created direct costs for the company. Walmart’s Sparky was described as giving an even more direct response, stating that the lack of action reflected a commercial decision rather than a legal obstacle.

Consumer protection concerns remain

The findings have raised concerns about the role of artificial intelligence in protecting consumers. As AI assistants become a more common part of online shopping, many users may expect them not only to recommend products but also to identify misleading claims that could influence purchasing decisions.

Researchers also observed differences in how Amazon’s AI handled questions about product origins. According to the study, Alexa answered questions about products made in China but restricted responses when users asked similar questions regarding ‘Made in USA’ claims. The researchers suggested this inconsistency may limit consumers’ ability to verify marketing statements before making purchases.

The issue is particularly significant because US regulations set strict standards for products carrying ‘Made in USA’ labels. The US Federal Trade Commission (FTC) requires that products advertised with this claim be manufactured entirely or almost entirely in the United States.

Last year, the FTC urged both Amazon and Walmart to strengthen efforts against false origin claims made by third-party sellers. The agency has previously stated that misleading country-of-origin labels can deceive consumers and create unfair competition for businesses that genuinely manufacture their products domestically.

Regulators face growing AI oversight challenge

The study marks the first publication from Columbia Law School’s Centre for Law and the Economy. The research centre was established by former FTC Chair Lina Khan, who has been a prominent figure in efforts to increase oversight of large technology companies.

During her time leading the FTC, Khan initiated legal action against Amazon over alleged anti-competitive practices in the retail market. That case remains ongoing. While the new study is separate from the lawsuit, it adds to wider discussions about the responsibilities of major online marketplaces as artificial intelligence becomes more deeply integrated into digital commerce.

Amazon responded to the study by stating that product origin information is displayed on product pages whenever it is available. The company also said it is working to make this information easier for customers to locate when browsing listings. Walmart did not provide a comment on the findings.

Khan argued that responsibility now rests with regulators to ensure consumers continue to benefit from advances in artificial intelligence. She suggested that as AI systems become increasingly capable of identifying misleading information, regulators should ensure those capabilities are used to improve transparency and consumer protection rather than remaining unused.

The study highlights a broader debate over how AI should be deployed in online marketplaces. While the technology appears capable of recognising inaccurate product claims, researchers argue that its value depends on whether companies choose to use those capabilities to protect shoppers. As AI-powered shopping assistants become more widely adopted, the balance between commercial interests, consumer trust and regulatory oversight is expected to remain an important issue for retailers and policymakers alike.