FTC Continues Efforts Against Deceptive AI Practices
Summary
On November 26, 2024, the Federal Trade Commission (FTC) announced a sixth action under its Operation AI Comply initiative targeting AI-related fraud and deception. The FTC alleged that Evolv Technologies deceptively advertised that its AI-powered security screening scanners would detect all weapons without misidentifying personal items. Evolv also allegedly made misleading claims about the accuracy and efficiency of its AI systems compared to traditional metal detectors. The FTC and Evolv reached a proposed settlement, which would allow K-12 school customers to opt out of their contracts with Evolv and would prohibit Evolv from misrepresenting the abilities of its AI system to distinguish between weapons and benign items, accuracy, speed, and other similar information.
On December 3, 2024, the FTC disclosed an action involving IntelliVision Technologies Corp. and its AI-powered facial recognition software. IntelliVision allegedly made false or unsubstantiated claims about its facial recognition software, including that it was free of race and gender biases. The FTC also alleged that IntelliVision claimed to have one of the highest accuracy rates, but did not have evidence to support such claims. IntelliVision agreed to a Consent Order, which would prohibit the company from making misrepresentations about accuracy of this technology, bias comparisons, and its ability to detect fake faces.
