US Manufacturers Ask FTC to Probe AI Chatbots Over 'Made In USA' Visibility

The Alliance for American Manufacturing (AAM) has formally requested that the Federal Trade Commission (FTC) initiate an investigation into whether artificial intelligence-powered shopping chatbots are actively hindering consumers' ability to locate products manufactured in the United States. This plea, submitted to the FTC on May 15, 2024, highlights concerns that these advanced AI tools, commonly integrated into e-commerce platforms and voice assistants, may be inadvertently or deliberately downplaying or concealing "Made In USA" labels and information.

The AAM, a coalition representing a broad spectrum of American manufacturing industries, argues that the increasing reliance on AI for product discovery and recommendation poses a significant challenge to domestic producers. Their petition suggests that the algorithms governing these chatbots might prioritize factors other than country of origin, such as price, brand recognition, or perceived popularity, thereby pushing American-made goods further down search results or omitting them entirely. This lack of transparency, the AAM contends, undermines consumer choice and disadvantages U.S. manufacturers who rely on clear "Made In USA" designations to attract patriotic and quality-conscious buyers.

Specific examples cited by the AAM include popular AI shopping assistants and voice-activated devices that, when queried about specific product categories, may not prominently feature or even list American-made options. The organization fears that this opacity could lead to a decline in sales for domestic companies, potentially resulting in job losses and a weakening of the U.S. manufacturing base. The AAM's petition calls for the FTC to examine the algorithms and data sources used by these AI shopping tools to determine if they comply with existing consumer protection laws and advertising standards, particularly those related to country-of-origin claims.

This call for investigation comes at a time when both consumers and policymakers are increasingly scrutinizing the role of AI in various aspects of commerce and daily life. The AAM's initiative underscores a growing sentiment among some industry groups that while AI offers numerous benefits, its implementation must be carefully monitored to ensure it does not inadvertently create barriers for domestic industries or mislead consumers. The FTC has not yet issued a formal response to the AAM's request, but the petition signals a potential new front in the ongoing debate about fair competition and consumer information in the digital marketplace.