Senators Baldwin, Scott Call for FTC Probe of Amazon, Walmart AI Chatbots Over Made-In-USA Label Issues

On September 17, Senators Tammy Baldwin (D-Wis.) and Rick Scott (R-Fla.) sent a letter to FTC Chair Andrew Ferguson and Commissioner Mark Meador requesting an investigation into Amazon and Walmart. They allege the companies’ AI chatbots—Amazon’s “Alexa for Shopping” and Walmart’s “Sparky”—suppress listings of products labeled “Made in the USA” and fail to flag fraudulent country-of-origin claims.

Reuters

The FTC has previously targeted false Made-in-USA labeling. Earlier in 2025, the agency sent letters to Amazon and Walmart urging the firms to monitor and correct third-party listings that falsely claimed U.S. origin. A March executive order issued by former President Donald Trump also directed agencies to crack down on deceptive Made-in-USA claims on digital marketplaces. The bipartisan request builds on a study released by a think tank led by former FTC Chair Lina Khan.

The Hill

Report

Baldwin, Scott Lead Bipartisan Call for Investigation Into Amazon and Walmart for Hiding Made in America Goods

Researchers Erie Meyer and Zachary Harris examined the two chatbots’ ability to locate and verify Made-in-USA products. Their analysis concluded that both Alexa and Sparky can technically detect false labeling and retrieve country-of-origin information, yet the systems often do not surface U.S.-made items when shoppers request them. In tests, Alexa declined to show a “Made in USA” fly-fishing reel while readily providing lists of products made in China. Slight phrasing changes (e.g., “in USA”) produced results, suggesting a possible intentional block for the exact phrase.

Baldwin, Scott Lead Bipartisan Call for Investigation Into Amazon and Walmart for Hiding Made in America Goods

The senators’ letter emphasizes that consumers seeking Made-in-USA goods should rely on accurate country-of-origin information. An Amazon spokesperson said Alexa for Shopping is a “continuously improving service” and that, when customers ask about country of origin, the chatbot directs them to product detail pages, denying intentional withholding. The FTC declined comment, and Walmart did not immediately respond.

Reuters

• The Khan-led study found both chatbots can discern false Made-in-USA labels when prompted, but they do not proactively flag them.

Baldwin, Scott Lead Bipartisan Call for Investigation Into Amazon and Walmart for Hiding Made in America Goods

• Alexa’s internal comparison chart showed a t-shirt listed both as Made-in-USA and imported, revealing the label’s falsehood after further questioning.

Baldwin, Scott Lead Bipartisan Call for Investigation Into Amazon and Walmart for Hiding Made in America Goods

Public statements from Amazon and the FTC are limited to brief responses; Walmart has not commented. The study’s conclusions rely on chatbot interactions and do not include independent audits of the companies’ broader compliance systems, leaving the overall impact of the alleged suppression unverified.

Reuters

• “We all share the goal of strengthening American manufacturing and small businesses through initiatives such as Made in USA labeling, all while ensuring consumers receive accurate information about where the products they buy are made,” — Tammy Baldwin

Baldwin, Scott Lead Bipartisan Call for Investigation Into Amazon and Walmart for Hiding Made in America Goods

The senators have urged the FTC to investigate the alleged anticompetitive practices and consider stronger enforcement actions. No specific timeline for an FTC inquiry has been announced.

The Hill