Amazon and Walmart are facing fresh scrutiny in Washington, and this time their AI shopping assistants are at the center of the fight. U.S. Senators Tammy Baldwin, a Wisconsin Democrat, and Rick Scott, a Florida Republican, have asked the Federal Trade Commission to investigate how the retail giants handle “Made in USA” products through their AI tools. Their September 17, 2026, letter raises concerns about Amazon’s Alexa for Shopping and Walmart’s Sparky.
The senators say the chatbots may make it harder for customers to find American-made goods while failing to flag products carrying questionable U.S. origin claims. Their concerns draw heavily from research published in July by Columbia University’s Center for Law and the Economy.
Why Amazon and Walmart’s AI Chatbots Are Under Scrutiny
The report also claimed that the tools did not consistently put that information in front of customers. Researchers argued that this was especially noticeable when shoppers searched specifically for products made in the United States.
According to the senators’ letter, researchers asked Amazon’s Alexa for Shopping to find a “Made in USA” product and were told the assistant did not have access to the necessary information. When researchers asked for products made in China, Alexa provided options.
The senators also highlighted a response reportedly generated when researchers questioned the lack of a “Made in USA” filter. Alexa allegedly said such a filter could “redirect significant sales away from their largest seller base,” referring to overseas manufacturers. The statement came from an AI-generated response, so it should not be treated as an official explanation of Amazon’s business policy.
The Columbia researchers also examined listings that appeared to contain conflicting origin information. A product might advertise itself as American-made in one part of a listing while another field identifies it as imported or made elsewhere.
Their report concluded that the shopping systems had enough information to identify possible conflicts. However, the researchers said the platforms did not appear to use that capability to proactively warn shoppers about potentially false “Made in USA” claims.
The FTC Has Already Warned Amazon and Walmart
On July 8, 2025, the FTC sent letters to both companies concerning third-party sellers that appeared to be making deceptive U.S. origin claims. The agency explained how federal “Made in USA” requirements apply to online marketplaces and identified sellers whose claims could violate federal rules and the platforms’ own terms.
Federal standards are fairly strict. Under the FTC’s Made in USA Labeling Rule, a product marketed without qualification as “Made in USA” generally must be “all or virtually all” made in the United States. Companies making false claims can face legal action and financial penalties.
Baldwin and Scott now argue that AI shopping assistants may create another weak point in that system. Their concern is not simply that questionable listings exist, but that platforms could possess information capable of identifying those problems without giving shoppers clear warnings.
Baldwin said consumers who want American made products should be able to find them without being steered toward foreign alternatives. She argued that online marketplaces should not disadvantage U.S. manufacturers when shoppers specifically ask for domestically produced goods.
The bipartisan nature of the request also gives the issue added weight. Baldwin and Scott come from different parties, but their letter focuses on the same basic questions about consumer information, marketplace fairness, and enforcement of existing labeling standards.
The senators asked the FTC to conduct a “robust investigation” and consider further enforcement action if appropriate. The agency had not publicly announced such an investigation when the request was reported on September 17.
Amazon disputes the suggestion that it ‘deliberately’ hides country of origin information from shoppers.
