AI shopping chatbots operated by Amazon and Walmart are being criticized for failing to provide consumers with adequate information about "Made in USA" products.

In particular, some questions resulted in no information about American-made products or responses stating that origin verification was difficult, while similar information was presented when the wording was slightly altered. As the U.S. government strengthens crackdowns on false country-of-origin claims, there is growing potential for regulatory discussions regarding the information provision methods of AI shopping services.

▲ AI Shopping Bots Fail to Properly Provide Made in USA Product Information

According to the Wall Street Journal on the 30th (local time), the Center for Law and the Economy at Columbia University, co-founded by Lina Khan, former chair of the Federal Trade Commission (FTC), stated in a recently released report that AI shopping chatbots from Amazon and Walmart fail to adequately provide information about American-made products.

According to the report, Amazon's AI shopping assistant "Alexa for Shopping" responded that it could not confirm relevant information when asked to recommend "boots produced in the USA" or "American-made fly fishing reels."

However, when the wording in the same question was changed to "in the USA," the chatbot presented a list of products labeled as American-made.

▲ Walmart AI Also Varies Responses Based on Question Phrasing

The Wall Street Journal Leadership Institute confirmed it reproduced the same phenomenon.

Walmart's AI shopping bot "Sparky" initially responded that it could not evaluate the credibility of "Made in USA" labels on products in the online shopping cart.

However, when a similar question was asked again, the bot presented the products ranked from "high credibility" to "low credibility·high likelihood of not being American-made."

This is assessed as a case demonstrating that AI produces different results for questions with the same meaning depending on how they are phrased.

▲ "AI Should Be Used to Expand Consumer Choice"

Aeri Meyer, senior research fellow at Columbia University's Center for Law and the Economy and co-author of the report, assessed that if AI shopping assistants provide country-of-origin information more actively, consumers can make more rational purchasing decisions.

Meyer previously served as the FTC's chief technology officer and policy planning director under Lina Khan's tenure.

He explained that this investigation raises questions about whether Amazon and Walmart's online marketplaces are held to the same standards as general retailers regarding country-of-origin labeling.

▲ Made in China Information Provided More Easily

The report revealed that Alexa relatively easily provided lists of "Made in China" products.

However, it noted that numerous instances of incorrect or contradictory "Made in USA" labels were found.

Some products were simultaneously labeled as both American-made and imported versions, showing inconsistency in country-of-origin information.

Additionally, Alexa acknowledged in one t-shirt product comparison that it had incorrectly labeled an item as American-made.

Amazon logo (Photo : [Reuters/Yonhapnews provided])

▲ Amazon Says No Intentional Information Reduction

Amazon stated that it disagreed with the report's conclusions.

The company explained that it is making efforts to provide consumers with detailed information when manufacturers or third-party sellers provide country-of-origin information.

It also refuted claims that it intentionally obscures country-of-origin information, saying they are untrue.

Amazon stated that it currently displays country-of-origin information on product detail pages when available, and is continuously improving Alexa's functions to provide this information more accurately.

Meanwhile, Walmart did not immediately issue an official statement regarding the report.

▲ AI Admits Limits to Country-of-Origin Verification

Notably, the AI chatbot itself acknowledged the limitations of country-of-origin verification.

Sparky explained in conversation with the WSJ Leadership Institute that its previous refusal to provide related answers was an overly cautious response.

It stated that while reasonable assessments are possible based on product name, brand credibility, and product category characteristics, it cannot definitively verify country-of-origin.

It also recommended that consumers ultimately check the official country-of-origin information directly in the Specifications section of each product page.

▲ Expansion of Efforts to Protect U.S. Made Product Market

A significant number of American consumers are known to pay additional costs or undergo separate search processes to purchase products manufactured in the United States.

However, actual American-made products are engaged in fierce price competition with cheaper imported goods and must compete with products of unclear origin.

As a result, the accuracy of country-of-origin labeling has emerged as an important issue in terms of consumer protection and fair competition.

▲ Trump Administration Strengthens Crackdown on False Country-of-Origin Claims

The Trump administration and the FTC have recently significantly strengthened crackdowns on false "Made in America" claims.

The FTC sent letters last year to Amazon and Walmart noting that some third-party sellers within the platforms appear to be making false claims about American-made products.

At the time, the FTC demanded that the two companies take action against those sellers, but did not determine whether the platforms themselves violated the law.

Subsequently, President Donald Trump instructed the FTC in March to consider introducing regulations requiring online marketplaces to establish mandatory procedures for verifying country-of-origin labeling.

▲ Aligns with Lina Khan's Policy Direction

The Center for Law and the Economy that released this report was jointly founded this year by former FTC Chair Lina Khan and Columbia Law School Professor Lev Menand.

Lina Khan has been advocating for strengthened antitrust enforcement against large platforms like Amazon since before taking office as FTC chair in 2021.

During her tenure, the FTC filed an antitrust lawsuit in 2023 against Amazon, alleging that it used its dominant position to raise prices and exclude competitors. The lawsuit remains ongoing.