Senators Urge FTC Probe into Amazon and Walmart AI Chatbots

U.S. Senators Tammy Baldwin and Rick Scott have requested that the Federal Trade Commission investigate Amazon Inc. and Walmart Inc. over the behavior of their AI shopping assistants, Alexa for Shopping and Sparky. In a letter to FTC Chair Andrew Ferguson and Commissioner Mark Meador, the lawmakers allege the chatbots suppress "made in the USA" products while promoting overseas sellers and failing to flag fraudulent origin labels.

The request follows a July report from Columbia University's Center for Law and the Economy, which found that the chatbots often failed to surface domestic-origin claims while providing data on foreign-made goods. The senators claim that while both companies possess the technical ability to detect fraudulent labels, they choose not to police them for business reasons. This bipartisan effort aligns with a March executive order from President Donald Trump directing the FTC to prioritize enforcement against false claims of American-made products in digital marketplaces.

Amazon Inc. denied intentionally withholding country-of-origin information, stating that such data is displayed on product detail pages when supplied by sellers. Walmart Inc. declined to comment. The FTC continues to enforce the Made in USA Labeling Rule, which allows for civil penalties against companies using deceptive labels.