Scott, Baldwin ask FTC to investigate Amazon, Walmart AI over ‘Made in USA’ fraud detection

Senators Rick Scott (R-Fla.) and Tammy Baldwin (D-Wis.) wrote to Federal Trade Commission Chair Andrew Ferguson and Commissioner Mark Meador on Thursday requesting an investigation into alleged anticompetitive conduct by Amazon and Walmart. The letter centers on concerns tied to detection of fraudulent "Made in USA" claims, according to the lawmakers.

The senators’ correspondence asks the FTC to look into whether the practices at issue—reported in relation to the companies’ use of AI-driven fraud detection—create unfair advantages or otherwise harm competition in the market for U.S.-labeled goods. The lawmakers framed the issue as one with potential implications for U.S. manufacturers and sellers who use or rely on domestic-origin labeling.

By directing the request to the FTC chair and a commissioner, the senators are seeking federal oversight and potential action from the agency that enforces consumer protection and antitrust laws. The letter underscores lawmakers’ interest in how large online marketplaces manage labeling enforcement and the downstream effects on sellers and consumers.

The senators’ outreach adds to ongoing scrutiny of major e-commerce platforms and their use of automated systems, including those that screen for fraudulent product claims. The FTC will decide whether to open a formal probe based on the information provided and its own assessment of potential consumer-protection or competition issues.