WASHINGTON, D.C. — The Federal Trade Commission (FTC) has taken action against Evolv Technologies, alleging that the Massachusetts-based company made false and unsupported claims about the capabilities of its AI-powered Evolv Express security screening systems. The proposed settlement order would restrict Evolv from making unverified claims about the effectiveness of its products and provide certain K-12 school clients the opportunity to cancel their contracts.
Allegations Against Evolv Technologies
The FTC’s complaint detailed several allegations about Evolv’s marketing and performance claims. The company promoted its Evolv Express systems as advanced screening tools capable of detecting all weapons while ignoring harmless items, such as binders, laptops, and water bottles, without requiring individuals to remove them from their bags or pockets. Evolv also claimed that its AI-driven scanners could enhance speed, reduce false alarms, and significantly reduce operating costs compared to traditional metal detectors.
However, the complaint alleged that Evolv’s express scanners failed to meet these claims. For example, the FTC noted that the system missed weapons in some instances. In one case reported in October 2022, it failed to detect a seven-inch knife that was later used in a stabbing at a school. Following the incident, the school adjusted the system’s settings to improve sensitivity, leading to a 50% false alarm rate.
The complaint also described Evolv’s 2023 introduction of more sensitive scanner settings intended to improve knife detection. While this adjustment aimed to reduce oversight of certain weapons, it led to higher false positive rates and an increased potential need for supplemental staffing. Evolv reportedly advised schools to adopt conveyor belts and other manual methods of item screening, effectively mirroring traditional metal detectors that are typically offered at a lower cost.
Additionally, the FTC alleged that Evolv overstated the efficiency and cost-effectiveness of its products, asserting that its systems could reduce labor costs by up to 70% compared to metal detectors by requiring fewer personnel. It further claimed Evolv misrepresented its systems’ testing and made misleading assertions about the role and accuracy of AI in its technology.
Proposed Settlement
The FTC’s proposed settlement order imposes several conditions to address Evolv’s alleged misrepresentations. Evolv would be banned from making unsupported claims about its scanners’ ability to detect weapons, exclude harmless items, and perform other functions without manual intervention. The order also prohibits misleading statements about screening speed, false alarm rates, labor cost savings, or the accuracy of AI-powered systems compared to traditional metal detectors.
A key component of the settlement would require Evolv to notify certain K-12 schools that signed contracts between April 2022 and June 2023 of their right to cancel their agreements. This measure is intended to offer relief to school systems that may have relied on Evolv’s assertions when entering multi-year contracts.
Industry and Consumer Protection Implications
Evolv’s alleged practices and the resulting FTC action spotlight the agency’s broader scrutiny of claims tied to artificial intelligence products, particularly when those claims involve public safety or other critical sectors. The case reflects the FTC’s expectations that companies substantiate assertions about AI capabilities with rigorous evidence.
Evolv Express scanners are widely used in over 800 schools across 40 states as well as other venues, including sports stadiums and hospitals. Schools represent approximately half of the company’s business, making the outcome of this settlement significant for its customer base.
With its proposed settlement, the FTC emphasizes the need for transparency and reliability, especially in markets where safety is paramount. The resolution also serves as a broader reminder to businesses that marketing claims, particularly those tied to emerging technologies such as AI, must be backed by concrete proof to avoid misleading consumers or regulators.
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