A research study found that Amazon and Walmart's AI systems successfully detect fraudulent 'Made in USA' product claims but do not flag or report them (July 2026). The finding highlights how retailers prioritize speed and cost over brand harm caused by counterfeit labeling.
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Amazon, Walmart AI detect 'made in USA' fraud but do not flag it, study says Reuters
"The harm to US 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." Put another way, Amazon does not care if you get what you paid for. www.reuters.com/business/ret... Amazon and Walmart AI shopping assistants can often detect when "Made in USA" product labels are false, but the
The study comes from a think tank led by Lisa Khan. Columbia Law School: Made in America, Hidden by AI: AI Shopping Chatbots Reveal How Amazon and Walmart Hurt American Manufacturers and Deceive Shoppers https:// law-and-economy.law.columbia.e du/content/made-america-hidden-ai-ai-shopping-chatbots-reveal-how-amazon-and-walmart-hurt-american Reuters: Study: Amazon, Walmart AI detect 'made in USA' f