Amazon and Walmart’s AI shopping assistants can detect potentially fraudulent “Made in USA” product claims but are not being used to flag the listings, a new study has found.
Research from Columbia Law School’s Center for Law and the Economy found that Amazon’s Alexa for Shopping and Walmart’s Sparky could identify discrepancies between products marketed as American-made and information showing they were imported or originated elsewhere.
However, the study claimed that both companies were failing to use those capabilities to tackle misleading product listings on their online marketplaces.
AI assistants blame ‘business decision’
Researchers said both shopping assistants described the lack of action as a business decision rather than a technical limitation.
Walmart’s Sparky reportedly suggested that US regulators typically pursue manufacturers rather than retailers over misleading origin claims.
The study also alleged that Amazon restricted responses to questions about products made in the US while allowing similar searches for goods made in China.
It claimed Amazon’s AI attributed the difference to the retailer’s commercial relationship with its overseas seller base.
The research was the first report published by the Columbia centre, which is led by former US Federal Trade Commission chair Lina Khan.
Khan said the findings demonstrated that commercial incentives would influence how retailers deploy increasingly sophisticated AI technology.
Amazon responds to study
Amazon said country-of-origin information was displayed on product pages when available and that it was continuing to improve Alexa for Shopping’s ability to provide the details accurately.
The online giant added that it takes action when sellers are found to have breached its policies.
Walmart did not immediately comment on the findings.
The Federal Trade Commission wrote to Amazon and Walmart in July 2025, calling on the retailers to clamp down on third-party sellers making potentially deceptive “Made in USA” claims.
Under US rules, products using the label must be “all or virtually all” manufactured in the country. Companies breaching the regulations can face legal action and financial penalties.
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