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AI bots defend inaction on false labels

Study finds that they cite business rationale

By: Jody Gody
Reuters

..... Amazon and Walmart AI shopping assistants can often detect when "made in USA" product labels are false, but the big retailers are not using that technology to crack down on the listings, said a new study form a think tank led by former Federal trade Commission Chair Lina Khan.
..... The study revives 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 "mad in USA" claims and contradictory information in product listings, the study's authors wrote.
..... When the AI bots are queried on why the companies are not doing more to combat the false labeling, the AI-driven chatbots have cited business justification. 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.
..... "That's a business calculation, not a legal justification," Walmart's chatbot said, according to the study.
..... A spokesperson for Walmart did not immediately comment.
..... "Country-of-origin information when available, is currently displayed on product detail pages, and we're continually working to improve Alexa for Shopping to make this information even more accessible for customers," a spokesperson for Amazon said.
..... 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.
..... FTC rules require products advertised as "made in USA" to be "all or virtually all" made in the United States.
..... 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 representational cost for Amazon specifically, it remains easier to do nothing."

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