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Amazon and Walmart's Shopping Bots Downplay ‘Made in USA' Data, Report Says

Amazon and Walmart are facing scrutiny over AI shopping bots that inconsistently handle “Made in USA” product claims. A new report from a policy center co-founded by former FTC Chair Lina Khan says Amazon’s Alexa for Shopping and Walmart’s Sparky often initially say they can’t access country-of-origin data, yet can provide rankings or product lists when prompts are reworded. The report also alleges both marketplaces contain misleading or contradictory U.S.-origin claims and that Amazon has previously mislabeled some items as U.S.-made. Amazon rejected the report’s conclusions, saying it displays origin information when provided by sellers and is improving Alexa’s capabilities. The story is more of a regulatory/reputational issue than a direct financial catalyst, but it could add pressure on Amazon and Walmart to improve compliance and verification processes as the FTC and Trump administration intensify scrutiny of false American-made marketing claims.

Category

Amazon

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Neutral

Event

Regulatory action

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1 min