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Amazon, Walmart AI detect 'made in USA' fraud but do not flag it, study says
['Jody Godoy', 'Min Read']
Yahoo Finance - Business Finance, Stock Market, Quotes, News
The study resurfaces questions about AI shopping assistants' mixed incentives, as retailers see the technology as a way to boost spending.
Amazon's Alexa for Shopping and Walmart's Sparky shopping assistants are capable of detecting mismatches between explicit "made in USA" claims and contradictory information in product listings, the study's authors wrote.
When researchers asked Walmart's Sparky why it does not flag suspicious "made in USA" claims, it responded that the FTC typically enforces "made in USA" rules against manufacturers, not retailers.
"Even as AI tools continue to grow in sophistication and capability, business incentives will shape how these advancements get deployed.
The FTC last year urged Walmart and Amazon to crack down on third-party sellers' "made in USA" claims, citing company policies requiring sellers to provide accurate information.