Scott, Baldwin ask FTC to investigate Amazon, Walmart AI over ‘Made in USA’ fraud detection

Scott, Baldwin Ask FTC to Probe AI “Made in USA” Claims

Provpnadvice.com – Scott Baldwin ask FTC to investigate Amazon and Walmart over concerns that artificial intelligence shopping tools could promote products with misleading “Made in USA” claims. Sens. Rick Scott, a Florida Republican, and Tammy Baldwin, a Wisconsin Democrat, asked the Federal Trade Commission to review the retailers’ handling of potentially fraudulent country-of-origin labels.

In a letter sent Thursday to FTC Chairman Andrew Ferguson and Commissioner Mark Meador, the senators said shoppers deserve reliable information when searching for goods made in the United States. They raised concerns that AI chatbots may recommend overseas or falsely labeled products to customers seeking American-made items.

“We write to request that [the FTC] investigate alleged anticompetitive practices by Amazon and Walmart involving suppression of Made in the USA products when customers use their AI shopping chatbots,” the letter states.

Questions About Marketplace Fraud Detection

Scott Baldwin ask FTC to investigate whether Amazon and Walmart are adequately identifying and reporting suspected fraudulent labels on their marketplaces. The lawmakers pointed to research from Columbia Law School researchers Erie Meyer and Zachary Harris, who concluded that the companies have the technical capacity to detect and flag alleged “Made in USA” fraud.

The senators argued that inaccurate origin claims can harm both consumers and legitimate U.S. manufacturers. Customers may choose American-made products to support domestic production, while sellers that follow federal standards may face unfair competition from listings that use deceptive labels.

Amazon and Walmart operate enormous online marketplaces, making the issue significant for shoppers across the United States. When AI tools summarize product choices rather than directing customers through individual listings, a misleading recommendation could make it more difficult to distinguish genuine domestic goods from falsely marketed alternatives.

“As two of the largest retail companies in the world, Amazon and Walmart’s potential noncompliance with federal standards and their explicit promotion of overseas and potentially fraudulent sellers on their online marketplaces and through their AI shopping chatbots is deeply concerning,” the senators wrote.

FTC Rules and Broader Enforcement Efforts

The Scott Baldwin ask FTC to investigate request comes as federal officials continue to scrutinize deceptive American-made marketing. FTC rules limit when companies may make unqualified claims that products are made in the United States, and the agency has brought enforcement actions against businesses accused of violating those standards.

President Trump issued a March executive order addressing false “Made in USA” claims involving digital marketplaces, foreign manufacturers and sellers. The order emphasized efforts to promote products manufactured, developed and produced in the United States.

In April, the FTC brought fraud-related cases under the executive order against TouchTunes Music Company, Americana Liberty, Three Nations and Oak Street Manufacturing Company. Those cases underscored the agency’s continuing focus on marketing claims that may mislead consumers about a product’s origin.

“No more games. No more fake labels. No more ripping off the American Taxpayer. AMERICA FIRST means BUY AMERICAN!” Trump said.

FAQ: “Made in USA” Shopping in the United States

What does the Senate request ask the FTC to do? Scott Baldwin ask FTC to investigate whether Amazon and Walmart allow fraudulent “Made in USA” claims to appear on their marketplaces and whether their AI shopping chatbots promote those listings.

Why do AI shopping tools matter? AI chatbots can shape purchasing decisions by recommending products in response to a customer’s request. If a shopper asks for American-made goods, the information used by the tool should accurately reflect whether products meet that description.

What can U.S. shoppers do before buying? Consumers can review product descriptions, manufacturer details and origin information before placing an order. They can also report suspected deceptive labeling to the appropriate retailer or the FTC.