Amazon (AMZN, Financials), the e-commerce and cloud computing company, and Walmart were found to have artificial intelligence shopping tools capable of detecting potentially false Made in USA claims, according to a new study.
The research revealed that Amazon's Alexa for Shopping and Walmart's Sparky were able to spot inconsistencies between statements about the nation of origin and other details in product listings. But the survey indicated the shops were not regularly employing those skills to flag or remove suspect ads.
Federal Trade Commission standards say anything branded Made in USA must be created wholly or almost entirely in the United States. The agency had previously asked both companies to better monitor claims made by third-party merchants.
Amazon said country-of-origin information is provided when accessible and that it continues to improve access to the data. Walmart did not reply immediately. The findings raise issues about whether AI shopping solutions are being built more to boost sales than to enhance marketplace compliance.
The problem might lead to legal, regulatory and reputational consequences if authorities find that the corporations have the technology to detect deceptive statements but chose not to act. Investors will be watching to see if regulators push Amazon and Walmart to increase enforcement of product-origin disclosures.