FTC moves against AI scanner company over deceptive claims

Company lied about capabilities and governmental approvals

A US weapons scanning company is facing regulatory action for making unsubstantiated claims about its AI-powered scanners.

The Federal Trade Commission (FTC) has proposed a settlement that would prohibit Massachusetts-based Evolv Technology from making future false or misleading statements about its products.

Evolv markets its Express scanners, used in hundreds of schools, stadiums and other venues, as a high-tech solution to traditional metal detectors. The company had boasted that its AI technology could detect all types of weapons including guns, knives and explosives.

However, the FTC's investigation revealed that these claims were unfounded.

In 2022, a BBC report revealed that Evolv's system was unable to consistently detect guns or bombs. This finding emerged following a freedom of information request submitted by the security analysis firm IPVM.

Earlier this year, the BBC further reported that Evolv's assertions about its technology being tested and approved by the UK government were untrue.

The FTC's complaint [pdf] alleges that Evolv deceptively advertised its scanners' capabilities, and that the company's scanners failed to detect weapons in several instances.

Evolv specifically marketed its products to US schools as a solution to the growing threat of weapons on school campuses.

The FTC found these claims problematic, given the system’s documented failures and the lack of evidence supporting the company's claims.

The FTC highlighted a 2022 incident in which a seven-inch knife passed undetected through an Evolv scanner at a school. The weapon was later used in a stabbing.

School officials increased the sensitivity settings of the scanner in response, but this resulted in a 50% false positive rate.

In 2023, Evolv introduced a more sensitive setting for its Express scanners aimed at improving the detection of knives and reducing false positives. However, the company acknowledged that even with this adjustment, some knives could still go undetected.

The increased sensitivity would “likely” result in more false alarms and could require extra staff to operate the machines effectively.

According to the FTC's complaint, Evolv also recommended that schools implement additional measures, such as conveyor belts to manually screen harmless items.

These changes, the complaint noted, make the system resemble traditional, lower-cost metal detectors.

As part of the proposed settlement, Evolv has agreed to stop making unsupported claims about its products' capabilities.

The company would also be required to offer certain schools the option to cancel their multi-year contracts with the company, without penalty.

Further legal action will depend on the court's approval of the settlement terms.

Evolv’s interim CEO, Mike Ellenbogen, said the settlement does not challenge the fundamental effectiveness of their technology.

"To be clear, this inquiry was about past marketing language and not our system's ability to add value to security operations," Ellenbogen said.

The FTC's action highlights the importance of holding companies accountable for their AI claims.

"The FTC has been clear that claims about technology – including artificial intelligence – need to be backed up, and that is especially important when these claims involve the safety of children," said Samuel Levine, Director of the Bureau of Consumer Protection.

"If you make those claims without adequate support, you can expect to hear from the FTC."

Computing says:

AI has given marketers a whole new area to hype, and they have dived right in. While it's their job to make products sound appealing, AI washing (hardly a new phenomenon) – as seen here – only hurts the company in the long run. And, in this case, has serious safety implications.