Amazon, Walmart AI detect 'made in USA' fraud but do not flag it, study says
AMZN•FTC rules and Khan's comments
The study is the first published by Columbia Law School's Center for Law and the Economy, launched after Khan returned to the university after her stint with the Federal Trade Commission.
"Even as AI tools continue to grow in sophistication and capability, business incentives will shape how these advancements get deployed. Policymakers and enforcers have a vital role to play to ensure the public doesn't get the short end of the stick," Khan said.
FTC rules require products advertised as "made in USA" to be "all or virtually all" made in the United States. 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.
When asked about false "made in USA" claims persisting on the platform, Amazon's Alexa replied, according to the authors, "the harm to U.S.-made brands is real and documented, but until that harm creates a financial, regulatory, or reputational cost for Amazon specifically, it remains easier to do nothing."
