Senators urge FTC to probe Amazon, Walmart over shopping bias
What's the story
Two US senators have asked the Federal Trade Commission (FTC) to investigate Amazon and Walmart. The request is based on allegations that their artificial intelligence (AI) shopping tools favor foreign products over those made in the US. Senators Tammy Baldwin and Rick Scott raised concerns about how these chatbots may mislead consumers and affect American manufacturing.
Study findings
Senators cite think tank study
The senators cited a study by a think tank led by former FTC Chair Lina Khan.
The research found that the chatbots in question, Amazon's Alexa for Shopping and Walmart's Sparky, suppress information about products made in America.
They also provide more data on items from other countries such as China.
Response analysis
Alexa said 'Made in USA' filter would hurt sales
The study also revealed that when asked why there was no "Made in USA" filter, Alexa said it would "redirect significant sales away from their largest seller base," referring to overseas manufacturers.
This response indicates a possible bias toward foreign products over domestic ones.
The researchers also found that these AI shopping assistants can detect false "made in USA" product labels but aren't using this technology to address such listings.
Advocacy
Baldwin, Scott urge FTC to take action
In their letter to the FTC, Baldwin and Scott stressed that everyone shares the goal of supporting American manufacturing and small businesses through initiatives like "Made in USA" labeling.
They also want consumers to have accurate information about where products are made.
The senators urged the Commission to consider additional enforcement measures after a thorough investigation to prevent such behavior in the future.
Past measures
FTC previously sent letters to Amazon, Walmart
Last year, the FTC had sent letters to Amazon and Walmart asking them to crack down on third-party sellers' "Made in USA" claims.
The letters cited company policies that require sellers to provide accurate information.
Notably, Lina Khan had sued Amazon while at the FTC, accusing it of maintaining illegal online retail monopolies. That case is still ongoing.