AI Spots Fake “Made in USA” Labels, Retailers Yet to Act: Study

A new study has found that the AI shopping assistants of Amazon and Walmart can often identify false “Made in USA” claims on products, but the retail giants are not fully using the technology to remove misleading listings. The report, published by Columbia Law School’s Center for Law and the Economy, highlights concerns over how business interests may influence the deployment of artificial intelligence in online shopping.

According to the study, Amazon’s Alexa for Shopping and Walmart’s Sparky were able to detect inconsistencies between products labeled as American-made and conflicting information in their listings. When questioned about why suspicious claims are not flagged more aggressively, the chatbots pointed to business and regulatory considerations rather than technological limitations.

The findings reignite debates over the responsibilities of major e-commerce platforms. U.S. Federal Trade Commission rules require products marketed as “Made in USA” to be almost entirely manufactured in the country. Researchers argue that while AI has the capability to protect consumers, stronger regulatory oversight may be necessary to ensure that technology is used in the public interest rather than solely for commercial gain.

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