US Senator Tammy Baldwin and Rick Scott have asked for a Federal Trade Commission (FTC) investigation into how AI shopping assistants from Amazon and Walmart manage country-of-origin information.
In a letter to the FTC, Senators Tammy Baldwin and Rick Scott stated that Amazon's Alexa for Shopping and Walmart's Sparky AI shopping assistants might be harming efforts to support American manufacturing and could be deceiving consumers, Reuters reported.
ALSO READ: This Energy Solution Stock Jumps 40% After Amazon Deal
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
They pointed to findings from a study conducted by a think tank headed by former FTC Chair Lina Khan, which revealed that chatbots tend to downplay information about products made in the United States while prominently displaying data on goods produced in other nations, such as China.
"When asked why there is no Made in USA filter, Alexa replied that it would 'redirect significant sales away from their largest seller base', referring to overseas manufacturers," the letter said, citing the study.
The study also noted that AI shopping assistants frequently identify when “Made in USA” product labels are misleading, yet major retailers aren't leveraging that technology to address such listings.
When researchers asked Walmart's Sparky why it did not flag suspicious "made in USA" claims, the chatbot cited limited FTC enforcement against retailers, calling it "a business calculation, not a legal justification," according to the study.
"We all share the goal of strengthening American manufacturing and small businesses through initiatives such as Made in USA labelling, all while ensuring consumers receive accurate information about where the products they buy are made," the senators wrote in the letter.
"Following a robust investigation, we strongly encourage the Commission to consider additional enforcement measures to deter such behaviour going forward," they reportedly added.
ALSO READ: Amazon Unveils $1.5 Billion Pay Hike, Pushing Average Compensation Over $32/Hour
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
