Amazon, Walmart chatbots attract senator ire over ’made in USA’ label snags

Two United States senators, Tammy Baldwin and Rick Scott, have formally requested that the Federal Trade Commission (FTC) launch an investigation into e-commerce giants Amazon and Walmart. The lawmakers allege that the companies' generative artificial intelligence shopping chatbots—Amazon's Alexa for Shopping and Walmart's Sparky—are suppressing 'Made in the USA' products while failing to flag fraudulently labeled merchandise. The senators cited findings from a study conducted by a think tank led by former FTC Chair Lina Khan. According to the research, these AI assistants actively hide or suppress domestic-origin goods while promoting alternatives manufactured abroad, particularly from China. When questioned by researchers, the chatbots reportedly cited commercial justifications, noting that filtering exclusively for American-made goods would redirect substantial sales away from their core international merchant bases. This congressional push elevates regulatory scrutiny on how major retail platforms deploy AI tools in search and recommendation algorithms. If the FTC initiates enforcement measures, Amazon and Walmart may face mandatory compliance overhauls, increased oversight on algorithmic transparency, and stricter verification rules for third-party origin claims.