Amazon and Walmart AI Assistants Fail to Act on Fake 'Made in USA' Labels

A new study has revealed that Amazon’s Alexa for Shopping and Walmart’s Sparky, two popular AI shopping assistants, can detect when a product labeled as ‘Made in USA’ is actually not made domestically. However, despite this capability, neither retailer takes action to flag or remove the listing from their platforms.

The research was conducted by Columbia Law School’s Center for Law and the Economy, led by former Federal Trade Commission chair Lina Khan. The study aimed to investigate whether these AI assistants can identify contradictions between a ‘Made in USA’ claim and country-of-origin details elsewhere in the same listing.

Researchers tested both Alexa and Sparky directly by querying them with listings that contained conflicting information about the product’s origin. In every case, the assistants were able to detect the discrepancy, but neither took any further action to address the issue.

The study found that this type of mismatch is common across both platforms, making it harder to explain as an isolated incident. The researchers also noted that when asked why their companies do not act on these discrepancies, the assistants cited business reasoning rather than any technical limitation.

Walmart’s Sparky explained that the FTC typically enforces ‘Made in USA’ rules against manufacturers rather than retailers, which is a legal argument about where liability lands. Amazon’s Alexa went further by acknowledging that the damage to American brands is real and documented, but stated that ignoring the problem remains easier until it costs them directly.

The researchers also observed an asymmetry in what Amazon’s assistant will discuss. Questions about products made in China get answered readily, while questions probing ‘Made in USA’ claims get blocked or ignored.

FTC rules are clear on this issue: a product advertised as ‘Made in USA’ must be all or virtually all made in the United States. The agency also asked both retailers last year to crack down on false country-of-origin claims by third-party sellers, pointing to their own marketplace policies that obligate sellers to provide truthful product information.

So, despite having the capability and clear rules guiding them, enforcement remains the missing piece. Amazon responded to the study by stating that origin information appears on product detail pages when available, but did not address the issue of why they do not act on discrepancies detected by their AI assistant.

Walmart declined to comment on the matter. The study’s findings highlight a trust dimension in shopping with AI assistants, where consumers are encouraged to treat them as advisers rather than sales channels. However, accuracy problems and selective silence can be harder to detect than outright mistakes, especially when these assistants gain more direct control over money.

The stakes rise as assistants become increasingly integrated into our purchasing habits, including linked bank accounts and financial data. The study frames the core issue as mixed incentives rather than capability, where business interests often take precedence over consumer protection.