WASHINGTON, D.C. — The Federal Trade Commission (FTC) has announced enforcement action against IntelliVision Technologies Corp. for allegedly making false and unsubstantiated claims about its AI-powered facial recognition software. The San Jose-based company, which provides technology used in home security systems and smart panels sold by Nice North America, LLC, is accused of misleading consumers regarding the accuracy, efficacy, and impartiality of its technology.
According to the FTC’s complaint, IntelliVision lacked evidence to support its claims that its software delivered one of the highest accuracy rates in the market and performed without gender or racial bias. Additionally, the FTC alleges the company inaccurately asserted that its facial recognition software was trained on millions of unique faces. Instead, the training data included images of approximately 100,000 individuals, with variations created through technological means.
The FTC also contends that IntelliVision failed to substantiate claims about its technology’s anti-spoofing capabilities, which were advertised as impervious to photo or video manipulation.
“Companies shouldn’t be touting bias-free artificial intelligence systems unless they can back those claims up,” emphasized Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Those who develop and use AI systems are not exempt from basic deceptive advertising principles.”
Proposed Settlement Terms
To resolve the allegations, a proposed consent order would prohibit IntelliVision from making misrepresentations about its technology’s accuracy, efficacy, and ability to perform equally across different gender, ethnic, and skin tone groups. The settlement also bars the company from advertising its anti-spoofing capabilities or any other aspect of the technology’s performance without competent, reliable testing to substantiate those claims.
This case marks the FTC’s continued crackdown on deceptive AI technology claims. Last year, the agency brought similar charges against a major retailer, imposing a five-year ban on its use of facial recognition technology.
The action against IntelliVision is an example of the FTC’s broader efforts to protect consumers and ensure companies provide evidence-based assurances about emerging technologies, particularly as AI systems become increasingly integrated into everyday life. Such actions are a call for accountability in the development and marketing of AI tools, emphasizing the need for transparency and fairness in the rapidly evolving tech sector.
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